There is no doubt about it a leasehold flat or house in Heathfield is a wasting asset as a result of the shortening lease. If the lease has, over 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner rather than later. The majority of flat owners in Heathfield will meet the qualifying criteria; that being said a lawyer should be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Heathfield with in excess of 100 years unexpired on the lease are sometimes 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 merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Heathfield,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Heathfield valuers.
Last year Thomas, came very close to the 80-year mark with the lease on his purpose- built flat in Heathfield. Having bought his flat two decades ago, the lease term was of minimal significance. Thankfully, he noticed he would soon be paying way over the odds for a lease extension. Thomas arranged for a lease extension just under the wire in January. Thomas and the freeholder via the management company in the end settled on sum of £6,000 . If he had missed the deadline, the amount would have escalated by at least £1,125.
In 2010 we were phoned by Mr and Mrs. V Fournier who, having acquired a one bedroom apartment in Heathfield in January 2006. The question was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable premises in Heathfield with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed monthly. The lease ended in 2082. Given that there were 56 years remaining we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus fees.
Last Spring we were phoned by Mrs P Lefèvre , who purchased a garden flat in Heathfield in April 2005. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar residencies in Heathfield with an extended lease were in the region of £242,600. The average ground rent payable was £45 invoiced per annum. The lease end date was on 20 March 2093. Considering the 67 years outstanding we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus expenses.