Heywood leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher amount will be due. Flat owners in Heywood will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Heywood with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Heywood can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 dealing with Heywood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the landlord of her basement apartment in Heywood, Sian started the lease extension process as the 80 year threshold was swiftly approaching. The legal work was concluded in October 2013. The landlord’s charges were restricted to below 550 pounds.
Ms Millie Lambert purchased a recently refurbished flat in Heywood in September 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Heywood with a long lease were worth £265,000. The average ground rent payable was £50 collected quarterly. The lease came to a finish in 2099. Given that there were 73 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
Mr V Mercier completed a basement apartment in Heywood in March 2003. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Similar homes in Heywood with a long lease were worth £264,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease terminated in 2079. Having 53 years outstanding we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 plus fees.