Unfortunately that a Heathfield residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Heathfield property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Heathfield will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Heathfield with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Heathfield can be a difficult process. We recommend you get guidance 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 procuring Heathfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the landlord of her ground floor apartment in Heathfield, Elizabeth commenced the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension was finalised in August 2005. The freeholder’s charges were restricted to slightly above 600 GBP.
Mr and Mrs. F Taylor purchased a ground floor flat in Heathfield in June 1995. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Similar premises in Heathfield with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 collected monthly. The lease elapsed in 2086. Having 60 years as a residual term we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including professional charges.
Mr and Mrs. S Johnson bought a newly refurbished apartment in Heathfield in July 2011. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative residencies in Heathfield with an extended lease were in the region of £260,000. The average amount of ground rent was £50 invoiced yearly. The lease lapsed on 12 October 2097. Given that there were 71 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.