The nearer a domestic lease in Heathfield nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than 80 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 reason why you should consider extending without delay. Most flat owners in Heathfield will qualify for this right; that being said a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Heathfield with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 conveyancing solicitors that we work with undertake Heathfield 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.
Milo was the the leasehold owner of a studio apartment in Heathfield being marketed with a lease of a few days over 59 years remaining. Milo informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were e-mailed by Dr Thomas Wilson who, having took over the lease of a studio apartment in Heathfield in June 2007. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar flats in Heathfield with 100 year plus lease were worth £208,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease ended on 19 July 2086. Considering the 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of legals.
Mr Connor García completed a one bedroom flat in Heathfield in March 1999. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Heathfield with an extended lease were in the region of £260,000. The average ground rent payable was £50 invoiced yearly. The lease finished in 2097. Given that there were 72 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.