The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Heath have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Heath lease extension. Postponing that expense today simply increases the price you will ultimately be required to pay for a lease extension.
Leasehold premises in Heath with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Heath can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie was the the leasehold owner of a 2 bedroom flat in Heath on the market with a lease of a little over 72 years outstanding. Freddie informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
In 2010 we were called by Mr and Mrs. R Girard who, having owned a one bedroom apartment in Heath in June 1995. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable flats in Heath with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 invoiced every twelve months. The lease finished on 28 July 2084. Having 58 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.
In 2014 we were contacted by Mr R Norbert who, having owned a studio apartment in Heath in November 2009. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Heath with a long lease were worth £200,000. The average ground rent payable was £50 billed per annum. The lease finished on 17 October 2104. Considering the 78 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.