The closer a domestic lease in Heaviley and Offerton gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Heaviley and Offerton will qualify for this right; that being said a lawyer will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Heaviley and Offerton with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Heaviley and Offerton,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 in-depth market knowledge and the close ties they enjoy with Heaviley and Offerton valuers.
Leo owned a conversion apartment in Heaviley and Offerton being sold with a lease of a little over fifty eight years remaining. Leo on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Autumn we were called by Ms K Williams , who acquired a basement flat in Heaviley and Offerton in June 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Heaviley and Offerton with an extended lease were worth £186,000. The average amount of ground rent was £65 invoiced monthly. The lease elapsed on 4 May 2083. Given that there were 58 years as a residual term we calculated the premium to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.
Last January we were approach by Mrs V Walker , who bought a studio apartment in Heaviley and Offerton in October 2006. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparative homes in Heaviley and Offerton with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected yearly. The lease ran out in 2094. Considering the 69 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.