When it comes to residential leasehold premises in Uckfield, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Anyone in Uckfield with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has below eighty years outstanding, under the current statute the landlord is entitled to calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with handle Uckfield 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.
Half a year ago Eliot, came dangerously close to the 80-year threshold with the lease on his studio apartment in Uckfield. In buying his property two decades ago, the unexpired term was of no concern. As luck would have it, he recognised he would soon be paying way over the odds for Extending the lease. Eliot was able to extend his lease just ahead of time in January. Eliot and the freeholder ultimately settled on the final figure of £5,000 . If he had missed the deadline, the sum would have escalated by at least £975.
Last Christmas we were e-mailed by Ms E Davies , who owned a one bedroom apartment in Uckfield in September 2010. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Uckfield with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease came to a finish in 2104. Given that there were 79 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Dr Felix Jackson was assigned a lease of a studio apartment in Uckfield in March 2004. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable residencies in Uckfield with an extended lease were in the region of £275,000. The average ground rent payable was £65 collected quarterly. The lease finished in 2093. Given that there were 68 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.