Why you should commence your Heywood lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3> Top reasons for lease extension now:
</h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/heywood">Heywood</a> leasehold property depreciates with the years remaining on the lease.
</h4>
<p>
Heywood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Heywood enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Heywood you would be well advised to see if your lease has between 70 and 90 years left. There are good reasons why a Heywood flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay <h4>Heywood property with a lease extension is almost the same value as a freehold</h4>
<p>
Leasehold residencies in Heywood with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it. <h4>Banks and Building Societies may not grant a mortgage on a short lease</h4>
The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>Coventry Building Society</td>
<td> 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.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
</tr>
<tr>
<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
</tr>
<tr>
<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
</tr>
</tbody>
</table>
</div>
</div>
<h4>
What makes us experts in Heywood lease extensions?
</h4>
<p> Using our service will provide you increased control over the value of your Heywood leasehold, as your property will be more valuable and saleable in respect of 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. <h4>
Heywood Lease Extension Case Studies:
</h4>
<h5> Nathaniel, Heywood, Greater Manchester,</h5>
<p>
Nathaniel owned a high value apartment in Heywood being sold with a lease of a little over 72 years outstanding. Nathaniel on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
<h5>Heywood case:</h5>
<p>
In 2012 we were called by Mr and Mrs. I López who, having took over the lease of a studio flat in Heywood in February 2007. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Heywood with 100 year plus lease were valued about £246,800. The mid-range amount of ground rent was £60 collected quarterly. The lease finished on 17 March 2076. Given that there were 50 years left we approximated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 plus fees.
<h5>Heywood case:</h5>
<p>
Last Spring we were contacted by Mr and Mrs. Y González , who
was assigned a lease of a purpose-built apartment in Heywood in July 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Identical premises in Heywood with 100 year plus lease were valued around £208,200. The mid-range ground rent payable was £65 invoiced annually. The lease ended in 2087. Given that there were 61 years unexpired we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including expenses.
</div>