As the the remaining lease term of a Heaviley and Offerton residential lease lessens so does its value and therefore the value of your property. Where the residual term has, over 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Heaviley and Offerton will qualify for this right; nevertheless a conveyancer will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Heaviley and Offerton with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Heaviley and Offerton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Matthew was the the leasehold proprietor of a high value flat in Heaviley and Offerton on the market with a lease of a little over 72 years left. Matthew on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last June we were contacted by Mrs B Ward , who was assigned a lease of a purpose-built flat in Heaviley and Offerton in May 1996. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable residencies in Heaviley and Offerton with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 collected monthly. The lease elapsed on 15 February 2078. Considering the 53 years remaining we estimated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of fees.
Ms N Garcia owned a newly refurbished flat in Heaviley and Offerton in March 1995. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical homes in Heaviley and Offerton with 100 year plus lease were in the region of £220,400. The average ground rent payable was £45 billed monthly. The lease ended in 2089. Having 64 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 plus professional charges.