Hailsham leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Hailsham will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hailsham can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Hailsham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the freeholder of her garden flat in Hailsham, Jessica initiated the lease extension process just as her lease was approaching the critical 80-year threshold. The transaction was finalised in August 2006. The freeholder’s costs were restricted to approximately 700 pounds.
In 2013 we were phoned by Mr George Cooper who, having bought a studio flat in Hailsham in September 2002. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable residencies in Hailsham with an extended lease were valued about £242,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease termination date was on 22 November 2091. Taking into account 67 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus professional charges.
In 2011 we were called by Mr Ethan Stewart who, having owned a recently refurbished flat in Hailsham in June 2003. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Similar properties in Hailsham with a long lease were worth £280,000. The average amount of ground rent was £55 billed every twelve months. The lease expired in 2102. Considering the 78 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.