It’s an underpublicised truth that a Hassocks residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Hassocks property prices.Where your lease has approximately ninety years left, you should start thinking about 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 below 80 years - otherwise a higher amount will be payable. Most leasehold owners in Hassocks will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Hassocks with over 100 years remaining 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 buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Hassocks can be a difficult process. We recommend you get guidance 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 in-depth market knowledge procuring Hassocks lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Charlie, came precariously near to the eighty-year mark with the lease on his garden apartment in Hassocks. Having bought his home two decades ago, the lease term was of little interest. Fortunately, he recognised he would imminently be paying an escalated premium for Extending the lease. Charlie was able to extend his lease just in the nick of time in September. Charlie and the landlord in the end settled on sum of £5,000 . If the lease had fallen below eighty years, the sum would have become more costly by a minimum £1,000.
Last Winter we were approach by Dr V Rogers , who took over the lease of a studio flat in Hassocks in September 2002. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Similar properties in Hassocks with an extended lease were worth £255,000. The average amount of ground rent was £50 collected yearly. The lease finished on 2 March 2097. Given that there were 71 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Ms S Rose was assigned a lease of a purpose-built apartment in Hassocks in September 2010. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable premises in Hassocks with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease came to a finish in 2077. Given that there were 51 years unexpired we approximated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of fees.