When it comes to long leasehold property in Heaton, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Residents in Heaton with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Heaton can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Half a year ago Alex, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Heaton. Having bought his home two decades ago, the length of the lease was of minimal concern. Thankfully, he noticed he needed to take steps soon on a lease extension. Alex arranged for a lease extension just under the wire last January. Alex and the freeholder ultimately settled on the final figure of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £1,125.
Last Winter we were phoned by Mr C Jackson , who took over the lease of a basement apartment in Heaton in February 1999. 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 properties in Heaton with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 billed monthly. The lease end date was on 4 September 2086. Given that there were 61 years left we estimated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus legals.
Dr Stephanie Ward moved into a ground floor flat in Heaton in January 2010. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable residencies in Heaton with a long lease were valued about £166,800. The average amount of ground rent was £50 billed yearly. The lease elapsed in 2075. Given that there were 50 years left we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of costs.