As the length of the unexpired term of a Heysham domestic lease decreases so does its value and therefore the value of your property. If the residual term has, more than 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Most flat owners in Heysham will qualify for this right; however a conveyancer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Retaining our service gives you enhanced control over the value of your Heysham leasehold, as your property will be more valuable and marketable 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.
Jack was the the leasehold owner of a studio apartment in Heysham being marketed with a lease of a little over 72 years remaining. Jack informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jack to invoke his statutory right. Jack procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Summer we were approach by Ms Y Morel , who completed a one bedroom flat in Heysham in October 2009. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable homes in Heysham with an extended lease were worth £285,000. The average amount of ground rent was £55 collected quarterly. The lease finished in 2106. Having 80 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
In 2012 we were e-mailed by Mr and Mrs. D Cooper who, having acquired a first floor flat in Heysham in November 2012. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Heysham with an extended lease were in the region of £200,800. The average ground rent payable was £65 invoiced annually. The lease ended on 21 October 2086. Considering the 60 years outstanding we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of legals.