Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Heywood. Clearly, the period of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Heywood have the right to extend the lease for a further ninety years in accordance with statute. Do give due deliberation before delaying your Heywood lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Heywood with in excess of 100 years unexpired 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 upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Heywood can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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.
Following lengthy discussions with the landlord of her ground floor apartment in Heywood, Kayleigh commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension completed in May 2010. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were called by Ms Francesca Khan , who owned a recently refurbished apartment in Heywood in February 1995. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative homes in Heywood with an extended lease were valued around £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease finished on 23 June 2103. Taking into account 77 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
Last May we were phoned by Mr C Gómez , who bought a one bedroom apartment in Heywood in November 2009. We are asked if we could approximate the price would be for a ninety year lease extension. Similar premises in Heywood with a long lease were worth £183,600. The average amount of ground rent was £65 collected every twelve months. The lease ended on 20 November 2083. Considering the 57 years left we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.