Lewes residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold premises in Lewes with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Halifax | |
| Santander | |
| The Mortgage Works |
The conveyancing solicitors that we work with handle Lewes 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 conveyancer we work with provide it.
Freddie owned a 2 bedroom flat in Lewes on the market with a lease of fraction over sixty years unexpired. Freddie on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Dr I Rivera completed a ground floor flat in Lewes in November 1995. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Identical residencies in Lewes with an extended lease were valued around £242,600. The mid-range ground rent payable was £45 collected every twelve months. The lease lapsed on 15 January 2093. Considering the 67 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including expenses.
Dr Alicia Ricardo was assigned a lease of a first floor flat in Lewes in August 2005. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar premises in Lewes with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 billed monthly. The lease expired in 2104. Considering the 78 years as a residual term we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.