The re-sale value of a leasehold property in Lewes is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when a lease still has 82 years to run so that all matters can be concluded in advance of the 80 year cut off point. Current legislation entitles Lewes qualifying lessees to an additional term of 90 years on top of the unexpired term, at a peppercorn rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Lewes with more than one hundred years remaining on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Lewes,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lewes valuers.
Mason owned a studio apartment in Lewes on the market with a lease of fraction over 72 years outstanding. Mason informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to grant 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. No ground rent would be due on a lease extension were Mason to exercise his statutory right. Mason obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
In 2011 we were e-mailed by Mr and Mrs. Y François who, having was assigned a lease of a one bedroom flat in Lewes in November 2003. The question was if we could approximate the premium would be to extend the lease by ninety years. Similar properties in Lewes with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease ended in 2094. Given that there were 69 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.
Dr A Ricardo bought a ground floor apartment in Lewes in November 2000. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Lewes with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease terminated in 2105. Given that there were 80 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.