When it comes to long leasehold property in Lewes, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Residents in Lewes with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once the lease term has under 80 years outstanding, under the relevant Act the freeholder can calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Lewes with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Lewes leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jackson, came precariously near to the eighty-year threshold with the lease on his purpose- built flat in Lewes. Having purchased his flat twenty years previously, the lease term was of no concern. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Jackson extended the lease just ahead of time in March. Jackson and the freeholder via the managing agents in the end agreed on an amount of £6,000 . If the lease had dipped lower than 80 years, the price would have increased by at least £1,050.
In 2013 we were e-mailed by Mr Aarav González who, having owned a basement apartment in Lewes in April 2007. The question was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Lewes with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease ended in 2105. Taking into account 79 years remaining we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Last November we were contacted by Mr V Parker , who took over the lease of a recently refurbished apartment in Lewes in April 2003. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable homes in Lewes with 100 year plus lease were worth £193,400. The average ground rent payable was £65 invoiced yearly. The lease expiry date was on 22 August 2085. Considering the 59 years outstanding we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.