Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Heath. Clearly, the term of lease left reduces over time. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Heath have the right to extend the lease for an additional ninety years under statute. You should give due attention before delaying your Heath lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Heath can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix was the the leasehold proprietor of a studio flat in Heath being sold with a lease of a few days over fifty eight years outstanding. Felix informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Felix to exercise his statutory right. Felix procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Mr F Richardson completed a garden flat in Heath in July 2002. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Heath with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced annually. The lease lapsed in 2080. Taking into account 55 years left we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus costs.
In 2009 we were e-mailed by Dr S Sánchez who, having took over the lease of a studio apartment in Heath in September 2008. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Heath with an extended lease were valued around £295,000. The mid-range ground rent payable was £50 invoiced monthly. The lease expired in 2100. Having 75 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.