Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Heckmondwike. Inevitably, the length of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Heckmondwike have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give due attention before delaying your Heckmondwike lease extension. Holding off the cost now simply increases the price you will eventually incur to extend your lease
Leasehold premises in Heckmondwike with more than one hundred years unexpired on the lease are sometimes 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 freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Retaining our service gives you increased control over the value of your Heckmondwike leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her two bedroom apartment in Heckmondwike, Sophia initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction completed in August 2005. The freeholder’s charges were restricted to a tad over 450 pounds.
In 2013 we were contacted by Dr M Wood who, having acquired a ground floor apartment in Heckmondwike in September 1999. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Similar homes in Heckmondwike with an extended lease were valued around £181,600. The mid-range ground rent payable was £55 collected per annum. The lease expired in 2078. Given that there were 52 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.
Last month we were phoned by Dr T Collins , who moved into a purpose-built apartment in Heckmondwike in September 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Heckmondwike with a long lease were worth £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out on 19 November 2098. Considering the 72 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.