Unfortunately that a Haslemere residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Haslemere property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. The majority of flat owners in Haslemere will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Haslemere with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 better control over the value of your Haslemere leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago James, came very close to the eighty-year threshold with the lease on his two bedroom flat in Haslemere. Having purchased his flat two decades ago, the unexpired term was of minimal relevance. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. James arranged for a lease extension just under the wire in May. James and the landlord subsequently agreed on a premium of £5,500 . If he had missed the deadline, the figure would have escalated by at least £1,150.
In 2012 we were phoned by Dr K Scott who, having owned a purpose-built flat in Haslemere in August 2004. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparative flats in Haslemere with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 billed every twelve months. The lease elapsed on 24 September 2077. Considering the 51 years outstanding we approximated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 not including fees.
In 2014 we were e-mailed by Mr and Mrs. U Rogers who, having took over the lease of a recently refurbished flat in Haslemere in March 2010. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative premises in Haslemere with a long lease were worth £210,600. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed on 18 October 2088. Taking into account 62 years left we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of fees.