Polegate leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Polegate will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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; |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Polegate,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Polegate valuers.
Toby was the the leasehold proprietor of a 2 bedroom apartment in Polegate being sold with a lease of a few days over 61 years outstanding. Toby informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Toby to exercise his statutory right. Toby procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2012 we were e-mailed by Mr and Mrs. W Rose who, having bought a first floor flat in Polegate in March 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Polegate with an extended lease were worth £250,000. The average ground rent payable was £50 collected annually. The lease concluded in 2094. Given that there were 70 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
Last Autumn we were approach by Mr and Mrs. C Martin , who purchased a basement flat in Polegate in February 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Polegate with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 billed quarterly. The lease terminated in 2074. Taking into account 50 years outstanding we calculated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of professional charges.