Peacehaven leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Peacehaven will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Peacehaven with in excess of 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Peacehaven,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Peacehaven valuers.
In the wake of 6 months of unsuccessful correspondence with the landlord of her one bedroom flat in Peacehaven, Nicole initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work was concluded in May 2007. The freeholder’s fees were kept to an absolute minimum.
Last year we were e-mailed by Dr Luca Richardson , who moved into a ground floor flat in Peacehaven in November 2003. The question was if we could estimate the price would be to extend the lease by an additional years. Similar premises in Peacehaven with a long lease were valued about £240,600. The mid-range ground rent payable was £60 invoiced yearly. The lease terminated on 15 August 2086. Taking into account 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of fees.
Mrs Hannah Johnson completed a first floor apartment in Peacehaven in July 2002. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Comparative premises in Peacehaven with an extended lease were valued about £174,200. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded in 2075. Taking into account 51 years remaining we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including fees.