With a residential leasehold property in Heysham, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years left. Anyone in Heysham with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When the lease term has less than 80 years left, under the current Act the freeholder can calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Heysham with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
Irrespective of whether you are a tenant or a landlord in Heysham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Heysham valuers.
Last October Reuben, started to get close to the 80-year mark with the lease on his ground floor flat in Heysham. In buying his home twenty years ago, the unexpired term was of minimal bearing. As luck would have it, he noticed he would soon be paying an escalated premium for Extending the lease. Reuben was able to extend his lease just under the wire last June. Reuben and the freeholder via the managing agents in the end agreed on an amount of £5,000 . If he had missed the deadline, the amount would have gone up by at least £1,025.
Last Summer we were e-mailed by Ms J Thomas , who took over the lease of a basement apartment in Heysham in October 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Heysham with 100 year plus lease were worth £256,600. The mid-range ground rent payable was £60 invoiced annually. The lease ended in 2078. Considering the 52 years as a residual term we approximated the premium to the landlord to extend the lease to be within £39,000 and £45,000 plus expenses.
Ms O Edwards owned a garden flat in Heysham in September 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable homes in Heysham with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected annually. The lease lapsed in 2089. Taking into account 63 years unexpired we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of professional charges.