Bexhill On Sea Lease Extension - Free Consultation

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Main reasons to commence your Bexhill On Sea lease extension


Top reasons for lease extension now:

Increase your lease and increase your Bexhill On Sea property value

With a long leasehold premises in Bexhill On Sea, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Bexhill On Sea with a lease nearing 81 years remaining should seriously consider extending it without delay. When a lease has below eighty years outstanding, under the current statute the freeholder is entitled to calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.

Bexhill On Sea property with a lease extension is almost the same value as a freehold

Leasehold residencies in Bexhill On Sea with more than 100 years remaining 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies may not lend on a short lease

Most mortgage lenders have tightened lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are regarded as unacceptable security.

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.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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.
Halifax Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

What makes us experts in Bexhill On Sea lease extensions?

Engaging our service will provide you enhanced control over the value of your Bexhill On Sea leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Bexhill On Sea Lease Extension Case Summaries:

Sebastian, Bexhill On Sea, East Sussex,

Sebastian owned a conversion apartment in Bexhill On Sea being marketed with a lease of a few days over fifty eight years outstanding. Sebastian informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.

Bexhill On Sea case:

Last month we were approach by Mr Alexander Mercier , who owned a one bedroom apartment in Bexhill On Sea in May 2011. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable flats in Bexhill On Sea with 100 year plus lease were valued about £200,000. The average ground rent payable was £50 collected monthly. The lease finished in 2101. Having 77 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.

Bexhill On Sea case:

Last Christmas we were phoned by Mr and Mrs. T Hall , who completed a purpose-built apartment in Bexhill On Sea in March 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable homes in Bexhill On Sea with a long lease were in the region of £260,200. The average ground rent payable was £65 collected yearly. The lease expired in 2090. Taking into account 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of costs.