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 the lease gets more expensive. Most owners of residential leasehold property in Heywood enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Heywood you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you increased control over the value of your Heywood leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the landlord of her two bedroom apartment in Heywood, Jennifer started the lease extension process as the 80 year deadline was rapidly approaching. The legal work was concluded in February 2014. The freeholder’s fees were kept to an absolute minimum.
Last month we were called by Dr Jessica Harris , who completed a first floor flat in Heywood in October 2000. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar flats in Heywood with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease concluded in 2102. Taking into account 76 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last Christmas we were contacted by Mrs H Martin , who moved into a ground floor flat in Heywood in February 2002. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparable residencies in Heywood with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 invoiced yearly. The lease ran out in 2082. Taking into account 56 years outstanding we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including costs.