Main reasons to commence your Heywood lease extension

Why you should commence your Heywood lease extension today:

Increase your lease and increase your Heywood property value

Heywood leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of 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 check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Heywood with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders will not loan monies on a short lease

Many mortgage companies insist on a lengthy amount of time remaining on a leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is reasonable to assume that someone intending to acquire your property in the future might well do, so in the event that they are not able to obtain a mortgage, then the value of your property will likely be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to lend on

Why use us for your lease extension in Heywood?

The conveyancers that we work with procure Heywood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Heywood Lease Extension Case Summaries:

Harry, Heywood, Greater Manchester

Last Spring Harry, came dangerously close to the 80-year threshold with the lease on his studio apartment in Heywood. In buying his property 18 years ago, the unexpired term was of little interest. by good luck, he recognised he needed to take action soon on Extending the lease. Harry extended the lease at the eleventh hour last March. Harry and the freeholder via the managing agents in the end agreed on sum of £5,500 . If the lease had slipped below 80 years, the sum would have gone up by a minimum £875.

Heywood case:

Last Spring we were called by Mrs Phoebe Garcia , who acquired a basement apartment in Heywood in September 2001. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical residencies in Heywood with an extended lease were valued around £200,800. The average ground rent payable was £65 invoiced quarterly. The lease ran out in 2086. Taking into account 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 plus fees.

Heywood case:

In 2014 we were e-mailed by Mr and Mrs. U Nguyen who, having was assigned a lease of a first floor flat in Heywood in July 1999. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Identical residencies in Heywood with a long lease were valued about £260,000. The average ground rent payable was £50 collected monthly. The lease expired on 12 September 2097. Taking into account 71 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.