It’s an underpublicised certainty that a Peacehaven residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Peacehaven property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay 50% 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 extra value that a lease extension will add the property Most leasehold owners in Peacehaven will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Peacehaven with over one hundred years left 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 home. In such situations there is often little to be gained by buying the reversionary interest 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Peacehaven,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Peacehaven valuers.
Half a year ago Jayden, started to get near to the eighty-year threshold with the lease on his basement flat in Peacehaven. In buying his property 18 years previously, the unexpired term was of little interest. Thankfully, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Jayden arranged for a lease extension just in the nick of time last March. Jayden and the freeholder eventually settled on an amount of £5,500 . If the lease had slipped to less than 80 years, the premium would have increased by a minimum £900.
Last Summer we were called by Mr and Mrs. T Thomas , who owned a basement flat in Peacehaven in November 2006. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Peacehaven with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 collected monthly. The lease finished in 2096. Given that there were 70 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
Mr Luca Dupont moved into a studio apartment in Peacehaven in July 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Peacehaven with a long lease were valued about £223,400. The average amount of ground rent was £60 collected quarterly. The lease expiry date was in 2085. Taking into account 59 years left we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus legals.