For anyone whose Heddon On The Wall home is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Heddon On The Wall leasehold, as your property will be more valuable and saleable in respect of lease length should you want 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.
After protracted correspondence with the landlord of her leasehold apartment in Heddon On The Wall, Lauren commenced the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction completed in September 2012. The landlord’s fees were kept to an absolute minimum.
In 2013 we were e-mailed by Dr Y Jackson who, having moved into a one bedroom apartment in Heddon On The Wall in August 1999. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Heddon On The Wall with an extended lease were in the region of £260,000. The average ground rent payable was £50 billed yearly. The lease elapsed in 2097. Taking into account 72 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
Dr Lewis Hernández purchased a one bedroom apartment in Heddon On The Wall in January 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Identical flats in Heddon On The Wall with an extended lease were in the region of £261,600. The mid-range amount of ground rent was £60 collected monthly. The lease terminated in 2077. Taking into account 52 years left we calculated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 plus costs.