With a long leasehold property in Heckington, you are actually purchasing a right to live 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 long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Heckington with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has less than eighty years remaining, under the current Act the landlord is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Heckington can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 in-depth market knowledge dealing with Heckington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Harry, came very near to the 80-year threshold with the lease on his garden flat in Heckington. In buying his home two decades ago, the unexpired term was of little relevance. by good luck, he noticed he would soon be paying an inflated amount for a lease extension. Harry arranged for a lease extension just ahead of time in September. Harry and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had slid to less than 80 years, the premium would have become more costly by a minimum £950.
In 2009 we were contacted by Mr Edward Dupont who, having completed a basement flat in Heckington in November 1997. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative premises in Heckington with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 billed monthly. The lease finished on 26 August 2079. Considering the 54 years as a residual term we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including legals.
In 2011 we were e-mailed by Mr and Mrs. H Moore who, having owned a newly refurbished flat in Heckington in May 2010. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative premises in Heckington with a long lease were in the region of £225,400. The average amount of ground rent was £45 invoiced yearly. The lease came to a finish in 2089. Given that there were 64 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of legals.