Chances are that where you own a flat in Peacehaven you actually own a long leasehold interest over your property
Leasehold properties in Peacehaven with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
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.
Subsequent to unsuccessful discussions with the freeholder of her one bedroom flat in Peacehaven, Francesca initiated the lease extension process as the eighty year threshold was rapidly nearing. The transaction was finalised in February 2013. The freeholder’s charges were kept to an absolute minimum.
Dr F Johnson was assigned a lease of a studio apartment in Peacehaven in May 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar properties in Peacehaven with a long lease were valued about £171,800. The average amount of ground rent was £55 billed every twelve months. The lease finished on 25 November 2076. Having 50 years left we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 plus costs.
Last month we were called by Mr and Mrs. T Hall , who took over the lease of a ground floor apartment in Peacehaven in August 2007. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparative flats in Peacehaven with an extended lease were worth £280,000. The average ground rent payable was £45 billed monthly. The lease elapsed in 2096. Having 70 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.