It’s an underpublicised certainty that a Haywards Heath residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Haywards Heath property market.Once your lease gets to 85ish years, you should 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 dips below eighty years - otherwise a higher amount will be due. Most flat owners in Haywards Heath will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Haywards Heath with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| Santander |
The conveyancing solicitors that we work with procure Haywards Heath lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Ryan was the the leasehold owner of a studio flat in Haywards Heath on the market with a lease of fraction over fifty eight years left. Ryan informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert advice and secured an acceptable resolution informally and sell the flat.
Dr B Bonnet purchased a garden apartment in Haywards Heath in July 2007. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical flats in Haywards Heath with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected annually. The lease finished in 2097. Given that there were 71 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.
In 2009 we were called by Mr and Mrs. W Gómez who, having owned a first floor flat in Haywards Heath in June 2007. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative flats in Haywards Heath with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed annually. The lease concluded in 2086. Taking into account 60 years unexpired we calculated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of expenses.