With a domestic leasehold property in Heaton Moor, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Heaton Moor with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has under 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Heaton Moor with over 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 warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with handle 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 lawyer we work with provide it.
Jamie was the the leasehold owner of a studio apartment in Heaton Moor on the market with a lease of fraction over 61 years outstanding. Jamie on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Jamie to exercise his statutory right. Jamie procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.
In 2010 we were e-mailed by Mrs Sophia Wood who, having moved into a garden flat in Heaton Moor in September 2010. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in Heaton Moor with 100 year plus lease were valued around £243,000. The average amount of ground rent was £65 collected quarterly. The lease concluded on 20 March 2089. Considering the 63 years left we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus fees.
Last Summer we were approach by Mr Daniel Morgan , who moved into a one bedroom flat in Heaton Moor in March 1998. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparative homes in Heaton Moor with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 billed monthly. The lease expired in 2078. Having 52 years unexpired we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including legals.