It’s an underpublicised certainty that a Peacehaven residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Peacehaven property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Peacehaven will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Using our service will provide you better control over the value of your Peacehaven leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Luke was the the leasehold owner of a conversion apartment in Peacehaven being sold with a lease of a little over sixty years left. Luke informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2014 we were called by Mr Henry Girard who, having was assigned a lease of a one bedroom apartment in Peacehaven in March 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Peacehaven with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded in 2104. Given that there were 78 years remaining we approximated the premium to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of professional charges.
In 2009 we were called by Mr and Mrs. E Scott who, having acquired a garden flat in Peacehaven in June 2008. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable residencies in Peacehaven with 100 year plus lease were valued about £267,600. The mid-range ground rent payable was £65 billed quarterly. The lease elapsed on 13 July 2093. Taking into account 67 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus professional charges.