Bexhill On Sea leases on residential deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Bexhill On Sea will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and steps to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Bexhill On Sea with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 conveyancing solicitor we work with provide it.
Half a year ago Dexter, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Bexhill On Sea. Having bought his property two decades ago, the length of the lease was of little bearing. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Dexter was able to extend his lease just under the wire last June. Dexter and the freeholder eventually agreed on an amount of £6,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £875.
Dr Tia Martinez bought a one bedroom apartment in Bexhill On Sea in July 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative properties in Bexhill On Sea with a long lease were valued around £189,000. The mid-range ground rent payable was £55 collected yearly. The lease expired on 10 September 2079. Taking into account 53 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.
Ms Jessica Mercier took over the lease of a first floor flat in Bexhill On Sea in March 1995. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar premises in Bexhill On Sea with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 invoiced annually. The lease concluded in 2099. Taking into account 73 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.