The re-sale value of a leasehold property in Hailsham is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year cut off point. Statute enables Hailsham qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 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 |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancers that we work with handle 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.
Half a year ago Aarav, started to get close to the 80-year threshold with the lease on his ground floor flat in Hailsham. Having purchased his flat 19 years ago, the unexpired term was of little interest. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Aarav extended the lease at the eleventh hour in January. Aarav and the landlord who owned the flat above ultimately settled on sum of £5,500 . If the lease had dipped to less than 80 years, the figure would have escalated by at least £1,075.
In 2014 we were approached by Mr Muhammad Khan who, having acquired a garden apartment in Hailsham in August 2005. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparable premises in Hailsham with 100 year plus lease were valued around £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded on 14 April 2082. Taking into account 56 years left we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus legals.
Last November we were phoned by Mr and Mrs. B Nguyen , who bought a one bedroom flat in Hailsham in May 2006. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical residencies in Hailsham with a long lease were in the region of £242,600. The average ground rent payable was £45 collected annually. The lease elapsed on 2 October 2093. Taking into account 67 years unexpired we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including costs.