Unfortunately that a Heathfield residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Heathfield property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Heathfield will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Engaging our service gives you enhanced control over the value of your Heathfield leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Mason, came precariously near to the 80-year threshold with the lease on his ground floor flat in Heathfield. Having purchased his home 18 years previously, the lease term was of minimal relevance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Mason arranged for a lease extension at the eleventh hour last June. Mason and the freeholder in the end agreed on an amount of £6,000 . If the lease had dropped to less than eighty years, the sum would have become more costly by a minimum £975.
Mr and Mrs. G Thomas moved into a recently refurbished apartment in Heathfield in May 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical premises in Heathfield with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected per annum. The lease finished on 14 February 2093. Having 68 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
Dr Kelsey Nguyen took over the lease of a purpose-built apartment in Heathfield in April 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Heathfield with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 invoiced per annum. The lease end date was in 2104. Having 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.