With a long leasehold premises in Peacehaven, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years remaining. Anyone in Peacehaven with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has below eighty years remaining, under the current legislation the landlord is entitled to calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Peacehaven with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Peacehaven can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Peacehaven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Callum, came seriously near to the 80-year mark with the lease on his two bedroom apartment in Peacehaven. Having bought his flat 19 years previously, the unexpired term was of little significance. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Callum was able to extend his lease just ahead of time in September. Callum and the landlord ultimately settled on sum of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £850.
Ms R Wright took over the lease of a recently refurbished flat in Peacehaven in August 1997. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable premises in Peacehaven with a long lease were in the region of £205,000. The average ground rent payable was £50 collected yearly. The lease expired on 15 January 2104. Taking into account 79 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Last Winter we were e-mailed by Mr A Thompson , who took over the lease of a ground floor apartment in Peacehaven in May 2012. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar properties in Peacehaven with an extended lease were worth £275,000. The average amount of ground rent was £65 billed quarterly. The lease finished in 2093. Given that there were 68 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.