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. It is the case that most Heywood tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Heywood you would be well advised to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Heywood leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Heywood,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heywood valuers.
Following protracted correspondence with the landlord of her purpose-built apartment in Heywood, Zoe started the lease extension process just as the lease was approaching the critical 80-year mark. The lease extension was finalised in June 2005. The landlord’s charges were kept to an absolute minimum.
In 2014 we were contacted by Mr Kai Morris who, having took over the lease of a purpose-built flat in Heywood in October 2001. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Heywood with a long lease were in the region of £280,000. The average ground rent payable was £55 billed per annum. The lease lapsed in 2103. Considering the 78 years outstanding we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.
Last year we were e-mailed by Dr N Rivera , who completed a first floor flat in Heywood in September 1997. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative homes in Heywood with 100 year plus lease were in the region of £191,000. The average ground rent payable was £65 invoiced yearly. The lease finished on 17 November 2083. Having 58 years as a residual term we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 not including costs.