Unfortunately that a Hailsham 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 first few years due to the depreciation being disguised by increases in the Hailsham property prices.Where your lease has approximately ninety years left, you need to 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 falls under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Hailsham will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Hailsham with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The lawyers that we work with procure Hailsham 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.
Last Christmas Caleb, came very close to the eighty-year threshold with the lease on his ground floor flat in Hailsham. In buying his property two decades ago, the length of the lease was of little bearing. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Caleb was able to extend his lease at the eleventh hour last March. Caleb and the freeholder ultimately settled on sum of £5,500 . If he had missed the deadline, the figure would have increased by a minimum £1,000.
Mr L Norbert acquired a ground floor flat in Hailsham in February 2008. The question was if we could estimate the price would be for a 90 year lease extension. Comparable residencies in Hailsham with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 collected yearly. The lease expired in 2091. Having 66 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Last year we were e-mailed by Mr Jacob Lefebvre , who purchased a purpose-built apartment in Hailsham in September 2011. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparative flats in Hailsham with 100 year plus lease were worth £280,000. The average ground rent payable was £55 collected annually. The lease expired on 24 October 2102. Given that there were 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.