Lewes leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Lewes tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Lewes you should see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Lewes leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Lewes,the lease extension solicitors 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.
Kai owned a 2 bedroom apartment in Lewes on the market with a lease of just over 72 years outstanding. Kai on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
In 2014 we were contacted by Mr and Mrs. L Cooper who, having moved into a first floor flat in Lewes in September 2004. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar premises in Lewes with a long lease were in the region of £203,200. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed on 12 July 2086. Considering the 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of legals.
In 2012 we were approached by Dr Omar Hall who, having moved into a studio flat in Lewes in July 2004. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable flats in Lewes with a long lease were worth £260,000. The mid-range amount of ground rent was £50 collected yearly. The lease terminated in 2097. Taking into account 72 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.