Heath Hayes leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Heath Hayes will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers that we work with handle Heath Hayes lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last Winter Sebastian, came precariously close to the 80-year threshold with the lease on his two bedroom apartment in Heath Hayes. In buying his flat two decades ago, the lease term was of no concern. As luck would have it, he recognised he needed to take action soon on a lease extension. Sebastian was able to extend his lease just ahead of time in August. Sebastian and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had dropped to less than eighty years, the premium would have increased by a minimum £875.
Mr F Baker purchased a one bedroom flat in Heath Hayes in August 2008. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Heath Hayes with an extended lease were worth £218,400. The average amount of ground rent was £60 invoiced quarterly. The lease came to a finish in 2085. Having 59 years unexpired we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 not including expenses.
Last April we were approach by Dr T Rivera , who took over the lease of a garden flat in Heath Hayes in August 2001. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical flats in Heath Hayes with 100 year plus lease were worth £205,000. The average ground rent payable was £50 billed per annum. The lease expiry date was on 25 March 2105. Taking into account 79 years outstanding we estimated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including legals.