Heaton Moor leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Heaton Moor residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Heaton Moor you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Heaton Moor with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Heaton Moor leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Lucas, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Heaton Moor. Having bought his flat two decades ago, the unexpired term was of little interest. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Lucas arranged for a lease extension just under the wire in July. Lucas and the freeholder ultimately agreed on an amount of £5,000 . If he had missed the deadline, the premium would have become more exhorbitant by a minimum £1,025.
Mr and Mrs. D Richardson completed a one bedroom apartment in Heaton Moor in July 2002. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable residencies in Heaton Moor with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out in 2101. Taking into account 75 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
In 2014 we were e-mailed by Ms Y Johnson who, having was assigned a lease of a purpose-built apartment in Heaton Moor in June 1996. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable properties in Heaton Moor with 100 year plus lease were valued about £250,400. The average amount of ground rent was £65 invoiced per annum. The lease finished on 8 July 2090. Having 64 years outstanding we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including legals.