Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Heanor. Inevitably, the term of lease left shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Heanor have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give due deliberation before putting off your Heanor lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Heanor with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Heanor can be a difficult process. We recommend you secure professional help from a lawyer and valuer 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 Heanor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her garden apartment in Heanor, Jennifer started the lease extension process as the eighty year deadline was swiftly nearing. The transaction completed in January 2014. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were e-mailed by Mr V Miller who, having acquired a newly refurbished apartment in Heanor in April 2001. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical homes in Heanor with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 collected yearly. The lease elapsed in 2100. Having 75 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
Last Autumn we were called by Mr and Mrs. N Bernard , who was assigned a lease of a first floor apartment in Heanor in February 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative homes in Heanor with 100 year plus lease were in the region of £173,800. The average ground rent payable was £60 invoiced per annum. The lease ran out on 21 October 2080. Given that there were 55 years left we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.