The re-sale value of a leasehold property in Heckmondwike is impacted by how long the lease has remaining. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that formalities can be finalised in advance of the eighty year mark. Current legislation entitles Heckmondwike qualifying lessees to an additional term of 90 years over and above the remaining term, at a peppercorn rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with over 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 premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a freeholder in Heckmondwike,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heckmondwike valuers.
In 2014 Archie, started to get close to the 80-year mark with the lease on his first floor apartment in Heckmondwike. Having purchased his flat two decades ago, the length of the lease was of minimal importance. Luckily, he noticed he needed to take action soon on a lease extension. Archie extended the lease just ahead of time in August. Archie and the freeholder in the end settled on an amount of £5,000 . If the lease had dipped lower than eighty years, the figure would have become more costly by a minimum £1,000.
Mr and Mrs. W Turner owned a studio flat in Heckmondwike in June 2012. We are asked if we could approximate the price would be to extend the lease by 90 years. Identical properties in Heckmondwike with a long lease were worth £200,000. The average amount of ground rent was £50 invoiced annually. The lease expired on 6 September 2103. Given that there were 78 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
Dr Hugo López acquired a newly refurbished flat in Heckmondwike in September 2007. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Identical residencies in Heckmondwike with a long lease were valued about £267,600. The mid-range amount of ground rent was £65 invoiced per annum. The lease concluded in 2092. Given that there were 67 years remaining we calculated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 not including legals.