Hailsham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Hailsham tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hailsham you would be well advised to see if your lease has between seventy and 90 years left. There are compelling reasons why a Hailsham flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Hailsham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hailsham valuers.
Half a year ago Joshua, started to get near to the eighty-year mark with the lease on his garden flat in Hailsham. Having purchased his home 19 years previously, the length of the lease was of no relevance. by good luck, he noticed he would soon be paying an inflated amount for Extending the lease. Joshua was able to extend his lease at the eleventh hour last January. Joshua and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If the lease had slipped to less than eighty years, the figure would have escalated by at least £1,150.
In 2013 we were phoned by Mr and Mrs. M Leroy who, having bought a garden apartment in Hailsham in October 2005. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Hailsham with an extended lease were in the region of £270,000. The average amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 17 November 2101. Taking into account 75 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2010 we were phoned by Dr Kayleigh Edwards who, having acquired a basement flat in Hailsham in November 2008. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative flats in Hailsham with 100 year plus lease were worth £173,800. The average amount of ground rent was £60 collected monthly. The lease expired in 2081. Taking into account 55 years left we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.