With a long leasehold premises in Heckington, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Heckington with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. When the lease term has under eighty years left, under the current Act the landlord is entitled to calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Heckington with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The lawyers that we work with handle Heckington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of protracted negotiations with the freeholder of her two bedroom flat in Heckington, Jade initiated the lease extension process as the eighty year mark was rapidly coming. The transaction was concluded in June 2008. The freeholder’s costs were kept to an absolute minimum.
Last October we were called by Dr Francesca Miller , who bought a garden flat in Heckington in September 2000. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Identical homes in Heckington with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded in 2103. Considering the 78 years outstanding we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.
In 2009 we were phoned by Dr S Turner who, having moved into a basement flat in Heckington in January 2006. The question was if we could estimate the price could be to extend the lease by 90 years. Comparative flats in Heckington with 100 year plus lease were valued about £186,000. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed on 16 May 2083. Considering the 58 years left we estimated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus professional charges.