The re-sale value of a leasehold property in Heathfield depends on how long the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed well before the 80 year threshold. Current legislation entitles Heathfield qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Heathfield,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Heathfield valuers.
Callum was the the leasehold proprietor of a conversion flat in Heathfield on the market with a lease of a little over fifty eight years left. Callum informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Callum to invoke his statutory right. Callum obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were contacted by Ms Rachael Brown who, having purchased a one bedroom apartment in Heathfield in April 2008. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Heathfield with an extended lease were valued around £260,000. The average amount of ground rent was £50 billed monthly. The lease finished in 2097. Given that there were 71 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Mrs O Cox owned a basement flat in Heathfield in November 2002. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Identical residencies in Heathfield with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease finished in 2077. Given that there were 51 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including expenses.