Heckmondwike leases on residential properties are gradually decreasing 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. Legislation has been in place for sometime now allowing qualifying Heckmondwike residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Heckmondwike you really ought to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Heckmondwike leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Heckmondwike 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 lawyer we work with provide it.
Half a year ago Caleb, started to get close to the 80-year threshold with the lease on his leasehold apartment in Heckmondwike. In buying his property two decades ago, the lease term was of no significance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Caleb arranged for a lease extension just under the wire in July. Caleb and the freeholder ultimately agreed on a premium of £5,000 . If the lease had dipped below eighty years, the amount would have gone up by at least £1,000.
Last August we were approach by Dr Kelsey Wilson , who bought a studio apartment in Heckmondwike in August 2007. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable flats in Heckmondwike with a long lease were in the region of £240,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease concluded in 2087. Taking into account 62 years outstanding we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus professional charges.
In 2012 we were contacted by Mr and Mrs. O Williams who, having was assigned a lease of a newly refurbished apartment in Heckmondwike in January 2004. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar residencies in Heckmondwike with 100 year plus lease were in the region of £174,200. The mid-range ground rent payable was £55 invoiced yearly. The lease expired on 16 May 2076. Taking into account 51 years unexpired we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.