There is no doubt about it a leasehold property in Hailsham is a wasting asset as a result of the shortening lease. Where the lease has, beyond 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Hailsham will qualify for this right; that being said a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Hailsham valuers.
Connor owned a high value flat in Hailsham being sold with a lease of fraction over 61 years remaining. Connor on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to invoke his statutory right. Connor obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2012 we were called by Mr F Bennett who, having acquired a basement flat in Hailsham in October 1997. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Comparative homes in Hailsham with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected every twelve months. The lease concluded in 2080. Taking into account 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of legals.
Last September we were contacted by Mr and Mrs. J Miller , who bought a recently refurbished apartment in Hailsham in May 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Hailsham with a long lease were in the region of £227,800. The average ground rent payable was £45 billed per annum. The lease terminated on 3 February 2091. Considering the 65 years remaining we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.