Heckmondwike leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Heckmondwike tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Heckmondwike you really ought to check if your lease has between seventy and ninety years left. There are good reasons why a Heckmondwike leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold premises in Heckmondwike with more than one hundred years remaining on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 be at least 75 years plus the term of the mortgage at the outset 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. |
Regardless of whether you are a tenant or a landlord in Heckmondwike,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heckmondwike valuers.
In the wake of eight months of protracted negotiations with the landlord of her two bedroom apartment in Heckmondwike, Poppy initiated the lease extension process as the eighty year mark was quickly approaching. The transaction was finalised in June 2010. The landlord’s fees were kept to an absolute minimum.
Last Winter we were phoned by Ms Francesca Evans , who took over the lease of a studio apartment in Heckmondwike in May 2011. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar flats in Heckmondwike with an extended lease were worth £225,800. The mid-range ground rent payable was £60 billed monthly. The lease expiry date was on 26 June 2086. Taking into account 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 plus professional charges.
In 2010 we were e-mailed by Dr M Girard who, having acquired a one bedroom flat in Heckmondwike in October 2012. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable flats in Heckmondwike with a long lease were in the region of £210,000. The average ground rent payable was £50 billed annually. The lease elapsed on 1 September 2106. Having 80 years as a residual term we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.