Lewes residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold properties in Lewes with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Lewes,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lewes valuers.
Austin was the the leasehold owner of a studio apartment in Lewes on the market with a lease of fraction over fifty eight years left. Austin on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Austin to exercise his statutory right. Austin obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2013 we were called by Ms Eleanor Nelson who, having moved into a ground floor flat in Lewes in November 2011. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparable residencies in Lewes with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £65 billed monthly. The lease ran out on 28 November 2081. Considering the 55 years as a residual term we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
Dr Abbie Williams acquired a studio flat in Lewes in August 2007. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Lewes with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 billed annually. The lease came to a finish in 2092. Considering the 66 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.