Unfortunately that a Bexhill On Sea residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Bexhill On Sea property prices.Once your lease gets to 85ish years, you need to start thinking about 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 under eighty years - otherwise a higher premium will be due. The majority of flat owners in Bexhill On Sea will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Bexhill On Sea 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 lawyer we work with provide it.
14 months ago Kyle, started to get near to the 80-year threshold with the lease on his first floor apartment in Bexhill On Sea. Having purchased his home two decades ago, the unexpired term was of no bearing. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Kyle arranged for a lease extension just ahead of time in July. Kyle and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If the lease had descended lower than eighty years, the sum would have become more costly by a minimum £975.
Last Christmas we were phoned by Mr and Mrs. G Murphy , who was assigned a lease of a one bedroom apartment in Bexhill On Sea in May 2010. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Identical properties in Bexhill On Sea with an extended lease were valued about £280,000. The average ground rent payable was £45 collected quarterly. The lease finished in 2095. Having 70 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
In 2014 we were phoned by Mr F Walker who, having was assigned a lease of a recently refurbished apartment in Bexhill On Sea in August 2002. We are asked if we could estimate the price could be for a ninety year lease extension. Similar properties in Bexhill On Sea with a long lease were valued about £223,400. The average ground rent payable was £60 billed annually. The lease lapsed in 2084. Given that there were 59 years unexpired we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of expenses.