When it comes to domestic leasehold premises in Heaton Moor, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years left. Residents in Heaton Moor with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under 80 years left, under the current Act the landlord is entitled to calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Heaton Moor,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heaton Moor valuers.
Sam was the the leasehold proprietor of a studio flat in Heaton Moor on the market with a lease of a few days over fifty eight years left. Sam informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Sam to exercise his statutory right. Sam procured expert advice and secured satisfactory deal informally and readily saleable.
In 2012 we were contacted by Dr D Rivera who, having owned a one bedroom flat in Heaton Moor in May 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 extension to my lease. Identical properties in Heaton Moor with 100 year plus lease were in the region of £213,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease ended in 2082. Considering the 57 years outstanding we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of legals.
Mr and Mrs. H Rivera owned a first floor apartment in Heaton Moor in October 2004. The question was if we could approximate the premium could be for a ninety year lease extension. Comparable premises in Heaton Moor with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected annually. The lease concluded in 2103. Given that there were 78 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.