When it comes to residential leasehold premises in Haslemere, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Haslemere with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once a lease has fewer than eighty years remaining, under the current legislation the freeholder can calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Haslemere with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| 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. |
Lease extensions in Haslemere can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Haslemere lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Finley, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Haslemere. In buying his property 18 years previously, the length of the lease was of no importance. Thankfully, he noticed he needed to take action soon on a lease extension. Finley extended the lease just ahead of time last March. Finley and the freeholder ultimately agreed on a premium of £6,000 . If he had missed the deadline, the premium would have increased by at least £925.
Last September we were phoned by Mr and Mrs. F Martinez , who moved into a basement flat in Haslemere in June 1998. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparable properties in Haslemere with an extended lease were worth £176,200. The average amount of ground rent was £65 invoiced per annum. The lease finished in 2081. Taking into account 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of costs.
Last month we were contacted by Dr E López , who was assigned a lease of a basement apartment in Haslemere in July 2004. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Similar premises in Haslemere with an extended lease were in the region of £242,600. The average ground rent payable was £45 collected annually. The lease concluded in 2092. Given that there were 67 years remaining we estimated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus fees.