Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Bexhill On Sea. Clearly, the term of lease left shortens over time. This may slip by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Bexhill On Sea have the right to extend the lease for a further 90 years under legislation. Please give careful consideration before delaying your Bexhill On Sea lease extension. Putting off the cost now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom 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 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bexhill On Sea,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bexhill On Sea valuers.
Thomas was the the leasehold proprietor of a 2 bedroom flat in Bexhill On Sea being sold with a lease of a little over 72 years outstanding. Thomas informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Thomas to exercise his statutory right. Thomas obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were called by Dr N Moore who, having completed a garden apartment in Bexhill On Sea in August 2003. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar flats in Bexhill On Sea with 100 year plus lease were worth £181,600. The average amount of ground rent was £55 collected annually. The lease expired on 9 June 2077. Having 52 years outstanding we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.
Last Summer we were phoned by Mr Ryan Watson , who owned a newly refurbished apartment in Bexhill On Sea in May 2007. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar properties in Bexhill On Sea with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease concluded on 22 May 2097. Taking into account 72 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.