With a domestic leasehold property in Bexhill On Sea, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Leasehold owners in Bexhill On Sea with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has fewer than eighty years remaining, under the current Act the landlord can calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Bexhill On Sea with in excess of one hundred years outstanding on the lease are sometimes 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 reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Bexhill On Sea,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bexhill On Sea valuers.
Last Spring Felix, started to get near to the eighty-year mark with the lease on his studio flat in Bexhill On Sea. In buying his home 19 years previously, the unexpired term was of no concern. Fortunately, he noticed he would imminently be paying an escalated premium for a lease extension. Felix arranged for a lease extension just in the nick of time in January. Felix and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If he failed to meet the deadline, the amount would have become more costly by at least £850.
In 2011 we were called by Mr F Martin who, having acquired a one bedroom flat in Bexhill On Sea in October 2001. The question was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparative flats in Bexhill On Sea with a long lease were worth £300,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded in 2101. Given that there were 76 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
In 2014 we were phoned by Dr T James who, having was assigned a lease of a one bedroom flat in Bexhill On Sea in September 2003. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative properties in Bexhill On Sea with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 collected monthly. The lease concluded on 3 November 2090. Taking into account 65 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus legals.