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Main reasons to start your Heywood lease extension

Main reasons to start your Heywood lease extension today:

A Heywood lease depreciates with the years remaining on the lease.

On the balance of probabilities where you own a flat in Heywood you actually own a long leasehold interest over your property

Heywood property with a lease extension is almost the same value as a freehold

Leasehold premises in Heywood with over one hundred years left 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 premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may not lend on a short lease

The trend since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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.
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.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.

What makes us experts in Heywood lease extensions?

The lawyers that we work with undertake Heywood 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.

Heywood Lease Extension Example Cases:

Kai, Heywood, Greater Manchester

Last year Kai, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Heywood. In buying his home two decades ago, the lease term was of little bearing. Fortunately, he became aware that he needed to take action soon on Extending the lease. Kai was able to extend his lease just under the wire last September. Kai and the landlord ultimately agreed on a premium of £5,000 . If he had missed the deadline, the figure would have become more costly by at least £925.

Heywood case:

Dr Y Michel owned a studio flat in Heywood in April 1995. We are asked if we could estimate the premium would be to extend the lease by 90 years. Similar flats in Heywood with a long lease were worth £250,000. The average amount of ground rent was £50 collected quarterly. The lease lapsed on 28 February 2093. Given that there were 68 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.

Heywood case:

Last Summer we were called by Mr and Mrs. A Hall , who owned a one bedroom apartment in Heywood in September 2012. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparable flats in Heywood with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 billed monthly. The lease elapsed on 19 August 2104. Having 79 years as a residual term we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.