Heathfield residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
Leasehold properties in Heathfield with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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. |
Retaining our service gives you increased control over the value of your Heathfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the freeholder of her studio flat in Heathfield, Shannon commenced the lease extension process as the eighty year threshold was fast nearing. The legal work was finalised in June 2015. The landlord’s fees were negotiated to a tad over 700 pounds.
In 2009 we were approached by Mrs Abigail López who, having acquired a one bedroom apartment in Heathfield in January 2002. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Identical flats in Heathfield with an extended lease were worth £166,400. The average ground rent payable was £60 collected per annum. The lease lapsed on 15 February 2080. Considering the 54 years unexpired we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.
In 2010 we were approached by Dr T Lambert who, having completed a ground floor apartment in Heathfield in April 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Identical premises in Heathfield with 100 year plus lease were in the region of £232,800. The mid-range ground rent payable was £45 billed annually. The lease ended in 2091. Having 65 years outstanding we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.