The re-sale value of a leasehold property in Heysham is impacted by how long the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised prior to the 80 year cut off point. Leasehold Reform legislation entitles Heysham qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Heysham with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| 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 better control over the value of your Heysham leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Austin was the the leasehold owner of a high value apartment in Heysham being sold with a lease of a few days over 59 years remaining. Austin on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Austin to exercise his statutory right. Austin procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2012 we were e-mailed by Mr and Mrs. L Ward who, having was assigned a lease of a purpose-built flat in Heysham in September 2009. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative flats in Heysham with an extended lease were in the region of £275,000. The average amount of ground rent was £55 billed yearly. The lease terminated in 2102. Given that there were 76 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last Summer we were approach by Mr and Mrs. M White , who owned a one bedroom apartment in Heysham in May 2007. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable homes in Heysham with an extended lease were valued about £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease end date was on 9 July 2082. Taking into account 56 years outstanding we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of costs.