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 expense of extending the lease can increase substantially once the remaining term is less than eighty years
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Haywards Heath can be a difficult process. We recommend you get professional help from a conveyancer 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 a wealth of experience 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.
Two years ago Omar, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Haywards Heath. Having purchased his flat twenty years previously, the unexpired term was of little relevance. Luckily, he realised he would imminently be paying way over the odds for Extending the lease. Omar was able to extend his lease just in the nick of time last August. Omar and the freeholder subsequently agreed on a premium of £5,000 . If the lease had slipped to less than eighty years, the price would have gone up by a minimum £950.
In 2010 we were contacted by Mr and Mrs. R Lee who, having purchased a one bedroom flat in Haywards Heath in November 2009. We are asked if we could approximate the price would be to extend the lease by 90 years. Similar homes in Haywards Heath with a long lease were in the region of £200,000. The average ground rent payable was £50 billed monthly. The lease elapsed in 2104. Taking into account 78 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Mr and Mrs. O Moreau acquired a one bedroom apartment in Haywards Heath in September 2011. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in Haywards Heath with an extended lease were valued about £267,600. The average ground rent payable was £65 invoiced per annum. The lease concluded on 7 January 2093. Considering the 67 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus costs.