Heywood leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Heywood tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Heywood you really ought to check if your lease has between 70 and ninety years left. There are compelling reasons why a Heywood leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Heywood can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
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 Heywood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Hunter, came perilously near to the 80-year threshold with the lease on his leasehold apartment in Heywood. In buying his home two decades ago, the length of the lease was of little importance. Fortunately, he realised he needed to take steps soon on a lease extension. Hunter was able to extend his lease just under the wire last June. Hunter and the landlord who owned the flat above in the end settled on a premium of £5,500 . If the lease had descended below eighty years, the sum would have gone up by at least £1,000.
Last Summer we were phoned by Ms Harriet Flores , who purchased a newly refurbished flat in Heywood in June 2010. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Identical residencies in Heywood with a long lease were valued about £264,000. The mid-range ground rent payable was £60 billed yearly. The lease finished in 2079. Taking into account 53 years remaining we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including expenses.
Last Christmas we were e-mailed by Mr Felix Evans , who was assigned a lease of a purpose-built apartment in Heywood in April 1995. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar homes in Heywood with an extended lease were worth £225,400. The average ground rent payable was £45 collected every twelve months. The lease finished on 2 May 2090. Taking into account 64 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including fees.