Heanor leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Heanor residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Heanor you must see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Heanor flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Heanor can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
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 a wealth of experience dealing with Heanor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jasper was the the leasehold proprietor of a studio apartment in Heanor on the market with a lease of just over sixty years unexpired. Jasper informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert advice and secured satisfactory deal informally and sell the property.
In 2012 we were phoned by Mr and Mrs. Y Reed who, having acquired a basement flat in Heanor in July 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Similar premises in Heanor with a long lease were valued about £208,200. The mid-range amount of ground rent was £65 collected monthly. The lease terminated on 28 April 2086. Considering the 61 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.
In 2010 we were approached by Mr James López who, having took over the lease of a purpose-built flat in Heanor in January 2008. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Heanor with a long lease were valued around £260,000. The average amount of ground rent was £50 invoiced monthly. The lease came to a finish in 2097. Given that there were 72 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.