The re-sale value of a leasehold property in Heaton is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised well before the eighty year mark. Statute entitles Heaton qualifying lessees to an additional term of 90 years on top of the remaining term, at a notional rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Heaton with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Heaton can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Heaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Caleb, started to get near to the 80-year mark with the lease on his studio flat in Heaton. Having bought his property two decades ago, the lease term was of little concern. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Caleb was able to extend his lease just under the wire last August. Caleb and the freeholder via the management company subsequently settled on an amount of £6,000 . If the lease had dipped to less than eighty years, the sum would have gone up by a minimum £1,025.
Mr G Martinez moved into a garden apartment in Heaton in April 1996. The question was if we could estimate the price would be to extend the lease by 90 years. Similar homes in Heaton with an extended lease were worth £206,200. The average amount of ground rent was £55 billed per annum. The lease ended in 2082. Having 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.
Last year we were called by Mr Eli David , who moved into a garden flat in Heaton in October 2001. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Similar premises in Heaton with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 collected per annum. The lease elapsed on 12 November 2102. Having 76 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.