Heanor leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Heanor will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and formalities to follow once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Heanor with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Heanor,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Heanor valuers.
Last Spring Rory, started to get close to the 80-year threshold with the lease on his one bedroom flat in Heanor. Having bought his flat two decades ago, the unexpired term was of minimal interest. As luck would have it, he realised he needed to take action soon on a lease extension. Rory extended the lease at the eleventh hour last August. Rory and the freeholder subsequently settled on sum of £5,000 . If he had missed the deadline, the amount would have become more exhorbitant by at least £875.
In 2010 we were e-mailed by Mr and Mrs. I Campbell who, having completed a one bedroom apartment in Heanor in January 2003. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable flats in Heanor with a long lease were in the region of £173,800. The average amount of ground rent was £60 billed monthly. The lease came to a finish on 13 April 2080. Considering the 55 years outstanding we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus costs.
In 2013 we were contacted by Dr A Rogers who, having completed a garden flat in Heanor in February 2007. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Heanor with 100 year plus lease were valued about £235,200. The average ground rent payable was £45 billed quarterly. The lease came to a finish in 2091. Having 66 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.