When it comes to domestic leasehold premises in Heywood, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than 80 years remaining. Residents in Heywood with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has less than eighty years remaining, under the current Act the landlord is entitled to calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank |
Lease extensions in Heywood can be a difficult process. We recommend you get professional help from a lawyer 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.
Dexter owned a conversion apartment in Heywood on the market with a lease of a few days over 61 years remaining. Dexter on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Ms B Stewart purchased a garden flat in Heywood in September 2004. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Heywood with 100 year plus lease were worth £261,600. The average amount of ground rent was £60 invoiced monthly. The lease terminated in 2078. Taking into account 52 years unexpired we calculated the premium to the landlord to extend the lease to be between £39,000 and £45,000 not including expenses.
In 2009 we were phoned by Mr Reuben Kelly who, having bought a ground floor apartment in Heywood in April 2006. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar properties in Heywood with a long lease were worth £218,000. The average ground rent payable was £45 billed yearly. The lease finished in 2089. Taking into account 63 years outstanding we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of fees.