The only way is down when it comes to Heath lease terms. Heath flats that have a residual term shorter than 80 years will de-escalate in market price even faster, and the cost to extend your lease will go up.
Leasehold residencies in Heath with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service gives you increased control over the value of your Heath leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Aarav was the the leasehold owner of a 2 bedroom apartment in Heath being sold with a lease of a few days over sixty years unexpired. Aarav on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
Mr and Mrs. D Taylor purchased a studio flat in Heath in November 2007. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative properties in Heath with a long lease were in the region of £174,200. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish on 9 July 2077. Having 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.
Mr R Hall was assigned a lease of a first floor apartment in Heath in September 2005. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Identical premises in Heath with an extended lease were in the region of £285,000. The average ground rent payable was £45 collected every twelve months. The lease ran out in 2097. Having 71 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.