Heywood leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher amount will be payable. Flat owners in Heywood will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations 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 conveyancer during the process.
Leasehold residencies in Heywood with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Heywood,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Heywood valuers.
16 months ago Edward, came critically close to the 80-year mark with the lease on his purpose- built flat in Heywood. In buying his home 18 years previously, the length of the lease was of little importance. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. Edward was able to extend his lease just in the nick of time in July. Edward and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If the lease had fallen below eighty years, the price would have become more exhorbitant by a minimum £1,000.
Last year we were contacted by Mr and Mrs. I Williams , who bought a one bedroom flat in Heywood in June 2010. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar premises in Heywood with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded on 21 April 2099. Given that there were 74 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
In 2013 we were contacted by Mr and Mrs. G Robinson who, having took over the lease of a garden apartment in Heywood in February 2010. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical homes in Heywood with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 collected per annum. The lease concluded in 2079. Having 54 years unexpired we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus legals.