It’s an underpublicised certainty that a Heysham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Heysham property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Heysham will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Heysham can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Heysham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Seth, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Heysham. In buying his property 18 years ago, the lease term was of no significance. by good luck, he recognised he would imminently be paying way over the odds for Extending the lease. Seth was able to extend his lease just under the wire last July. Seth and the freeholder ultimately agreed on an amount of £5,000 . If he not met the deadline, the price would have escalated by at least £1,150.
Last Winter we were e-mailed by Dr Arthur Kelly , who completed a one bedroom apartment in Heysham in March 2012. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Heysham with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ended in 2100. Considering the 74 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Last Spring we were called by Mr and Mrs. R Cox , who completed a studio apartment in Heysham in May 2012. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Heysham with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected annually. The lease elapsed in 2080. Given that there were 54 years remaining we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including costs.