The nearer a residential lease in Peacehaven nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 100 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Peacehaven will qualify for this right; that being said a conveyancing solicitor will be able to advise 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.
Leasehold residencies in Peacehaven with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure Peacehaven lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to unsuccessful correspondence with the freeholder of her studio flat in Peacehaven, Jennifer started the lease extension process just as the lease was nearing the critical eighty-year mark. The legal work was concluded in March 2007. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were contacted by Mr and Mrs. O Phillips , who purchased a first floor apartment in Peacehaven in October 2007. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical residencies in Peacehaven with an extended lease were worth £233,200. The mid-range ground rent payable was £60 billed quarterly. The lease elapsed in 2086. Having 61 years remaining we approximated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus legals.
Last April we were contacted by Mr and Mrs. R Díaz , who purchased a studio apartment in Peacehaven in August 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative premises in Peacehaven with an extended lease were valued about £171,800. The average ground rent payable was £55 billed quarterly. The lease elapsed in 2075. Taking into account 50 years outstanding we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including expenses.