As the the remaining lease term of a Heanor residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 100 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Heanor will meet the qualifying criteria; nevertheless a lawyer will be able to confirm whether 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.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Heanor leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Elijah owned a studio flat in Heanor being sold with a lease of fraction over 59 years left. Elijah on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last January we were contacted by Mr and Mrs. Y Ricardo , who purchased a basement apartment in Heanor in July 2012. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Heanor with an extended lease were in the region of £191,000. The average ground rent payable was £65 collected yearly. The lease came to a finish on 21 July 2083. Having 58 years left we approximated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of professional charges.
Dr Aaron Cox moved into a garden apartment in Heanor in January 2006. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative residencies in Heanor with a long lease were worth £250,000. The average amount of ground rent was £50 invoiced quarterly. The lease concluded on 10 November 2094. Given that there were 69 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.