The re-sale value of a leasehold property in Heanor depends on how many years the lease has remaining. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed prior to the 80 year threshold. Statute entitles Heanor qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a nominal rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Heanor 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 conveyancing solicitor we work with provide it.
Last October Adam, came very near to the eighty-year mark with the lease on his ground floor apartment in Heanor. Having bought his home 18 years previously, the unexpired term was of minimal bearing. Fortunately, he noticed he needed to take action soon on a lease extension. Adam was able to extend his lease just in the nick of time in June. Adam and the freeholder eventually agreed on an amount of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £975.
Last Spring we were called by Ms Sophia Rodríguez , who moved into a basement apartment in Heanor in August 1999. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Heanor with 100 year plus lease were valued around £210,600. The average amount of ground rent was £45 collected per annum. The lease ended in 2087. Taking into account 62 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus legals.
Last Spring we were e-mailed by Dr P Thomas , who owned a first floor flat in Heanor in August 2012. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Heanor with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 collected yearly. The lease expired in 2098. Having 73 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.