Hailsham leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Hailsham will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hailsham can be a difficult process. We recommend you secure 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 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.
Following unsuccessful discussions with the landlord of her leasehold flat in Hailsham, Jasmine initiated the lease extension process as the 80 year threshold was quickly approaching. The transaction was concluded in March 2012. The landlord’s charges were negotiated to below five hundred pounds.
In 2012 we were phoned by Dr Aiden Ramírez who, having owned a ground floor flat in Hailsham in October 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Identical homes in Hailsham with a long lease were valued about £280,000. The mid-range ground rent payable was £55 billed annually. The lease termination date was in 2103. Given that there were 78 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
Ms Rosie Thompson purchased a studio apartment in Hailsham in July 2009. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Hailsham with a long lease were in the region of £191,000. The average amount of ground rent was £65 billed annually. The lease came to a finish in 2083. Having 58 years unexpired we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of legals.