Bexhill On Sea residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
Leasehold residencies in Bexhill On Sea with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| 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 lawyers that we work with procure 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.
Last year Evan, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Bexhill On Sea. In buying his flat 18 years previously, the lease term was of little bearing. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Evan arranged for a lease extension just under the wire last July. Evan and the freeholder via the management company eventually agreed on a premium of £6,000 . If the lease had dipped lower than eighty years, the figure would have become more exhorbitant by at least £1,125.
Ms Isabelle Flores purchased a garden flat in Bexhill On Sea in August 2009. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparative flats in Bexhill On Sea with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 collected monthly. The lease lapsed in 2099. Given that there were 74 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.
Mr Kyle Bailey completed a ground floor flat in Bexhill On Sea in July 2008. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar flats in Bexhill On Sea with a long lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease elapsed in 2088. Considering the 63 years left we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus fees.