Heywood leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher premium will be due. Flat owners in Heywood will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some situations you may not be entitled. There are also strict timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Heywood with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Retaining 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 want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a high value flat in Heywood on the market with a lease of a little over 61 years outstanding. Andrew on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2014 we were approached by Dr G López who, having took over the lease of a studio apartment in Heywood in February 1998. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable premises in Heywood with a long lease were valued around £208,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease came to a finish in 2087. Given that there were 61 years unexpired we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus professional charges.
Last Autumn we were e-mailed by Mr and Mrs. I Mercier , who took over the lease of a recently refurbished apartment in Heywood in January 2005. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical premises in Heywood with an extended lease were worth £260,000. The average amount of ground rent was £50 billed annually. The lease ended in 2098. Taking into account 72 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.