Hailsham residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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.
Two years ago Finn, started to get near to the eighty-year mark with the lease on his garden flat in Hailsham. Having bought his flat twenty years ago, the lease term was of no importance. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Finn extended the lease at the eleventh hour in May. Finn and the landlord subsequently settled on sum of £6,000 . If the lease had dipped below 80 years, the price would have gone up by at least £1,075.
Last Autumn we were called by Dr N Taylor , who completed a studio flat in Hailsham in January 2001. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparable premises in Hailsham with a long lease were in the region of £290,000. The average ground rent payable was £60 collected every twelve months. The lease expired in 2106. Considering the 80 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.
Dr B James took over the lease of a purpose-built flat in Hailsham in March 2001. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar premises in Hailsham with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded in 2086. Taking into account 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of legals.