Heaton Moor leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Heaton Moor will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancing solicitors that we work with undertake Heaton Moor 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.
Alex owned a conversion flat in Heaton Moor being sold with a lease of a little over 61 years unexpired. Alex on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Alex to invoke his statutory right. Alex obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
In 2011 we were called by Mr U Rogers who, having purchased a one bedroom apartment in Heaton Moor in November 2011. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical homes in Heaton Moor with 100 year plus lease were worth £210,000. The average ground rent payable was £50 collected quarterly. The lease ended on 15 April 2106. Having 80 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last month we were contacted by Mr and Mrs. G Hill , who acquired a one bedroom flat in Heaton Moor in July 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Heaton Moor with an extended lease were valued about £275,000. The mid-range ground rent payable was £45 invoiced per annum. The lease finished in 2095. Considering the 69 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.