Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Lewes. Inevitably, the period of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Lewes have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Please give careful deliberation before delaying your Lewes lease extension. Holding off that expense now simply increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Lewes with over 100 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Lewes leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Gabriel, came dangerously close to the 80-year mark with the lease on his studio flat in Lewes. In buying his home twenty years previously, the unexpired term was of minimal concern. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Gabriel arranged for a lease extension just under the wire in June. Gabriel and the landlord in the end settled on an amount of £5,000 . If the lease had dipped lower than 80 years, the sum would have become more exhorbitant by a minimum £1,150.
In 2010 we were contacted by Mr and Mrs. L Campbell who, having moved into a garden flat in Lewes in November 1997. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Lewes with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish in 2094. Considering the 68 years left we estimated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 not including costs.
In 2012 we were contacted by Mr and Mrs. T Watson who, having completed a studio apartment in Lewes in June 2012. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable flats in Lewes with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ended in 2105. Considering the 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.