The closer a domestic lease in Lewes nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Lewes will qualify for this right; nevertheless a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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. |
Engaging our service will provide you better control over the value of your Lewes leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted discussions with the landlord of her basement apartment in Lewes, Freya started the lease extension process just as her lease was coming close to the critical 80-year mark. The transaction was finalised in May 2006. The landlord’s fees were negotiated to less than 600 GBP.
In 2011 we were approached by Mr Leo Carter who, having acquired a one bedroom flat in Lewes in February 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Lewes with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 collected per annum. The lease terminated in 2097. Considering the 73 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
In 2013 we were contacted by Mr and Mrs. W Young who, having took over the lease of a garden apartment in Lewes in July 2002. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative flats in Lewes with a long lease were valued around £264,000. The mid-range amount of ground rent was £60 collected annually. The lease terminated on 16 April 2077. Having 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 not including professional charges.