The closer a residential lease in Heysham nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in Heysham will meet the qualifying criteria; however a lawyer can confirm whether you are eligible 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.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Heysham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Kai was the the leasehold owner of a studio apartment in Heysham being sold with a lease of a few days over fifty eight years outstanding. Kai on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Kai to invoke his statutory right. Kai obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr Harvey Moreau completed a one bedroom apartment in Heysham in April 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Heysham with 100 year plus lease were valued about £225,400. The average amount of ground rent was £45 invoiced yearly. The lease concluded on 10 March 2090. Considering the 64 years left we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of legals.
In 2013 we were e-mailed by Mrs Alisha Richardson who, having moved into a purpose-built apartment in Heysham in June 2009. The question was if we could approximate the price would be to extend the lease by 90 years. Comparable premises in Heysham with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease lapsed in 2101. Considering the 75 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.