There is no doubt about it a leasehold flat or house in Heath is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 125 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Heath will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Heath,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heath valuers.
Following protracted correspondence with the freeholder of her leasehold apartment in Heath, Jasmine started the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was finalised in March 2012. The landlord’s fees were restricted to a tad over 500 pounds.
Last month we were contacted by Mr and Mrs. U Wright , who took over the lease of a ground floor apartment in Heath in February 1999. The question was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Identical flats in Heath with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 billed annually. The lease expired in 2097. Considering the 72 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
Dr G Díaz bought a first floor flat in Heath in September 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative residencies in Heath with 100 year plus lease were valued around £233,200. The mid-range ground rent payable was £60 collected every twelve months. The lease terminated in 2086. Taking into account 61 years left we estimated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of costs.