When it comes to domestic leasehold premises in Lewes, you effectively rent it for a certain amount of time. These days flat leases are usually granted 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. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years left. Leasehold owners in Lewes with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under eighty years remaining, under the relevant statute the freeholder is entitled to calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, 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 are not acceptable. 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; |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Lewes can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Lewes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Finn, started to get close to the eighty-year mark with the lease on his leasehold apartment in Lewes. Having purchased his property 19 years ago, the lease term was of no interest. As luck would have it, he became aware that he would soon be paying way over the odds for a lease extension. Finn was able to extend his lease at the eleventh hour last March. Finn and the freeholder via the management company subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,000.
Dr Y Davies purchased a studio apartment in Lewes in January 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Lewes with 100 year plus lease were valued around £261,600. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2078. Given that there were 52 years left we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 plus fees.
Dr E Ricardo bought a ground floor flat in Lewes in February 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Lewes with a long lease were worth £218,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ended on 4 March 2089. Taking into account 63 years unexpired we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of professional charges.