Heywood Lease Extension - Free Consultation

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Main reasons to start your Heywood lease extension

Main reasons to commence your Heywood lease extension today:

Increase your lease and increase your Heywood property value

There is no doubt about it a leasehold property in Heywood is a wasting asset as a result of the shortening lease. If the residual term has, in excess of one hundred years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Heywood will meet the qualifying criteria; that being said a conveyancer will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

Heywood property with a lease extension has roughly the same value as a freehold

Leasehold properties in Heywood with in excess of 100 years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may decide not to issue a mortgage on a short lease

Banks and building societies will not grant a mortgage on short residential leases. You are likely to experience problems where you want to sell your flat in Heywood if the unexpired lease term is less than the criteria set by the majority of mortgage companies. Different lenders have different criteria but on the whole they are looking for an unexpired term of at least seventy years.

Lender Requirement
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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.
Halifax 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.
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.

Why use us for your lease extension in Heywood?

Irrespective of whether you are a tenant or a landlord in Heywood,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heywood valuers.

Heywood Lease Extension Example Cases:

Seth, Heywood, Greater Manchester,

Seth was the the leasehold proprietor of a high value apartment in Heywood on the market with a lease of fraction over 61 years remaining. Seth informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.

Heywood case:

In 2010 we were approached by Mr and Mrs. U Rodríguez who, having took over the lease of a one bedroom flat in Heywood in June 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Heywood with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ran out in 2093. Taking into account 72 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.

Heywood case:

Last year we were phoned by Mr Ben Reed , who acquired a purpose-built apartment in Heywood in February 2002. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparable premises in Heywood with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 collected monthly. The lease terminated on 14 October 2073. Having 52 years outstanding we estimated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of legals.