The nearer a domestic lease in Heddon On The Wall gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. Most flat owners in Heddon On The Wall will meet the qualifying criteria; nevertheless a lawyer should be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Heddon On The Wall with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Heddon On The Wall leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Isaac, started to get close to the eighty-year mark with the lease on his purpose- built flat in Heddon On The Wall. In buying his home twenty years previously, the length of the lease was of minimal significance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Isaac was able to extend his lease just ahead of time last April. Isaac and the freeholder in the end settled on sum of £5,000 . If he not met the deadline, the price would have become more costly by at least £850.
Dr T Johnson purchased a purpose-built flat in Heddon On The Wall in September 2006. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparative premises in Heddon On The Wall with a long lease were valued around £264,000. The average ground rent payable was £60 collected monthly. The lease end date was on 9 July 2078. Taking into account 53 years as a residual term we estimated the premium to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of fees.
In 2011 we were phoned by Dr Sian Bailey who, having took over the lease of a purpose-built apartment in Heddon On The Wall in October 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Heddon On The Wall with an extended lease were valued about £225,400. The average amount of ground rent was £45 billed per annum. The lease finished on 21 January 2089. Considering the 64 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including expenses.