The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Bexhill On Sea have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Bexhill On Sea lease extension. Postponing the costs today simply increases the price you will ultimately have to pay to extend the lease.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bexhill On Sea,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bexhill On Sea valuers.
Trailing unsuccessful correspondence with the landlord of her basement flat in Bexhill On Sea, Kate initiated the lease extension process as the eighty year threshold was quickly approaching. The transaction completed in July 2007. The landlord’s charges were kept to an absolute minimum.
Mr Harry Rodríguez owned a one bedroom flat in Bexhill On Sea in October 1996. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical flats in Bexhill On Sea with an extended lease were in the region of £243,000. The average ground rent payable was £65 invoiced per annum. The lease terminated in 2088. Having 63 years remaining we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus costs.
Last Summer we were phoned by Dr E Moreau , who was assigned a lease of a studio flat in Bexhill On Sea in November 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Bexhill On Sea with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 collected annually. The lease finished on 26 March 2077. Given that there were 52 years outstanding we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of fees.