There is no doubt about it a leasehold flat or house in Heath is a wasting asset as a result of the shortening lease. If the lease has, beyond 125 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Heath will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Heath with in excess of one hundred years left on the lease are sometimes referred to as ‘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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with handle Heath 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 lawyer we work with provide it.
Off the back of protracted correspondence with the landlord of her ground floor flat in Heath, Naomi started the lease extension process just as the lease was coming close to the critical eighty-year threshold. The transaction was finalised in July 2005. The landlord’s fees were negotiated to a tad over 650 GBP.
Last year we were approach by Dr R Hill , who bought a newly refurbished flat in Heath in March 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Heath with 100 year plus lease were valued around £225,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease terminated on 9 September 2086. Given that there were 60 years outstanding we approximated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of expenses.
Last Autumn we were contacted by Mr and Mrs. V Lefèvre , who was assigned a lease of a one bedroom apartment in Heath in May 2005. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable premises in Heath with a long lease were valued about £210,000. The average amount of ground rent was £50 invoiced per annum. The lease finished in 2106. Given that there were 80 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.