On the balance of probabilities if you own a flat in Heathfield you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Heathfield,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heathfield valuers.
Teddy was the the leasehold proprietor of a studio flat in Heathfield on the market with a lease of just over 59 years left. Teddy on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Teddy to invoke his statutory right. Teddy procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Winter we were e-mailed by Ms Ellen Williams , who was assigned a lease of a ground floor flat in Heathfield in October 2011. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative flats in Heathfield with 100 year plus lease were in the region of £193,400. The average amount of ground rent was £65 invoiced monthly. The lease termination date was on 4 May 2085. Taking into account 59 years outstanding we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
Last month we were contacted by Mrs Samantha Girard , who purchased a basement flat in Heathfield in February 2004. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparable properties in Heathfield with a long lease were valued about £255,000. The average ground rent payable was £50 billed yearly. The lease expired in 2096. Considering the 70 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.