Haslemere residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold residencies in Haslemere with in excess of one hundred years left 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you increased control over the value of your Haslemere leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her leasehold apartment in Haslemere, Courtney initiated the lease extension process as the eighty year threshold was fast approaching. The transaction completed in May 2009. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. J Wright was assigned a lease of a one bedroom flat in Haslemere in September 2012. We are asked if we could approximate the price could be to extend the lease by ninety years. Identical homes in Haslemere with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease elapsed on 21 April 2093. Given that there were 68 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Last Winter we were phoned by Mrs J Hall , who owned a recently refurbished apartment in Haslemere in March 2002. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Haslemere with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease elapsed on 16 June 2104. Given that there were 79 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.