The value of Haywards Heath leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is below than eighty years
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 Haywards Heath can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 Haywards Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aaron was the the leasehold owner of a studio apartment in Haywards Heath being sold with a lease of a little over 61 years outstanding. Aaron informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Aaron to invoke his statutory right. Aaron procured expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Spring we were approach by Dr G Hill , who owned a garden apartment in Haywards Heath in July 2009. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable properties in Haywards Heath with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out on 25 August 2090. Considering the 64 years left we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus legals.
In 2011 we were called by Dr George James who, having owned a first floor flat in Haywards Heath in April 2003. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar residencies in Haywards Heath with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed on 18 June 2079. Taking into account 53 years unexpired we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.