Heathfield residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold premises in Heathfield with in excess of 100 years left 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Heathfield,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heathfield valuers.
Two years ago Lewis, came dangerously near to the 80-year mark with the lease on his two bedroom apartment in Heathfield. Having bought his home twenty years previously, the length of the lease was of minimal interest. Fortunately, he realised he would imminently be paying way over the odds for Extending the lease. Lewis was able to extend his lease just under the wire in March. Lewis and the freeholder eventually agreed on the final figure of £5,000 . If the lease had dipped lower than eighty years, the sum would have increased by a minimum £1,125.
Dr Seth Harris purchased a recently refurbished flat in Heathfield in January 1995. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical flats in Heathfield with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 invoiced yearly. The lease concluded on 17 October 2082. Considering the 57 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.
Mrs C Ward acquired a studio apartment in Heathfield in April 2012. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparative flats in Heathfield with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed quarterly. The lease lapsed on 19 August 2093. Having 68 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.