As the length of the unexpired term of a Heckmondwike residential lease lessens so does its value and therefore the value of your property. Where the lease has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in Heckmondwike will qualify for this right; nevertheless a conveyancer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Heckmondwike with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘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 upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Heckmondwike leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Owen owned a studio apartment in Heckmondwike being marketed with a lease of fraction over 59 years remaining. Owen on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen obtained expert advice and secured satisfactory resolution without going to tribunal and sell the property.
In 2010 we were contacted by Dr Y Allen who, having bought a ground floor flat in Heckmondwike in May 2001. The question was if we could approximate the premium could be for a 90 year extension to my lease. Identical flats in Heckmondwike with a long lease were worth £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease expiry date was on 1 February 2094. Taking into account 68 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2010 we were phoned by Dr Y Evans who, having moved into a studio flat in Heckmondwike in March 2004. The question was if we could estimate the price could be for a ninety year lease extension. Comparable properties in Heckmondwike with a long lease were worth £208,600. The average ground rent payable was £60 collected monthly. The lease expired on 13 June 2083. Given that there were 57 years as a residual term we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including costs.