Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Heathfield. Inevitably, the length of lease left shortens over time. This is often ignored and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Heathfield have the right to extend the lease for an additional 90 years under legislation. Please give due deliberation before putting off your Heathfield lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension
Leasehold premises in Heathfield with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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 |
The conveyancers that we work with undertake Heathfield 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 lawyer we work with provide it.
Half a year ago Finn, came precariously close to the eighty-year mark with the lease on his garden flat in Heathfield. In buying his property 19 years previously, the unexpired term was of little bearing. Thankfully, he became aware that he needed to take steps soon on a lease extension. Finn arranged for a lease extension just under the wire in March. Finn and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If he had missed the deadline, the amount would have become more exhorbitant by at least £1,000.
Dr Omar Bailey moved into a garden flat in Heathfield in June 2012. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Heathfield with a long lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish in 2101. Considering the 75 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Mr and Mrs. W Cook was assigned a lease of a basement flat in Heathfield in June 2008. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable premises in Heathfield with a long lease were worth £173,800. The mid-range ground rent payable was £65 invoiced monthly. The lease terminated on 11 February 2081. Having 55 years left we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.