For anyone whose Heckmondwike home is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold properties in Heckmondwike with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Heckmondwike can be a difficult process. We recommend you get guidance from a lawyer 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 a wealth of experience procuring Heckmondwike lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the landlord of her garden apartment in Heckmondwike, Jodie started the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction was finalised in April 2009. The landlord’s costs were negotiated to a tad over 700 pounds.
In 2011 we were phoned by Mr Theo Pérez who, having purchased a first floor flat in Heckmondwike in August 2007. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Similar properties in Heckmondwike with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 billed yearly. The lease terminated in 2106. Taking into account 80 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
Dr J Taylor bought a purpose-built apartment in Heckmondwike in March 2002. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Similar properties in Heckmondwike with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 collected every twelve months. The lease concluded in 2095. Considering the 69 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.