When it comes to long leasehold property in Bexhill On Sea, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years left. Leasehold owners in Bexhill On Sea with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has fewer than 80 years remaining, under the current Act the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Bexhill On Sea with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bexhill On Sea can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Bexhill On Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the landlord of her leasehold flat in Bexhill On Sea, Bethan started the lease extension process as the eighty year mark was fast nearing. The lease extension completed in February 2008. The landlord’s charges were negotiated to less than 450 GBP.
Dr F Hill was assigned a lease of a first floor apartment in Bexhill On Sea in October 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Bexhill On Sea with an extended lease were in the region of £205,000. The average ground rent payable was £50 invoiced yearly. The lease came to a finish on 8 June 2103. Considering the 78 years remaining we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
Mr and Mrs. P Ricardo completed a basement flat in Bexhill On Sea in October 1995. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Bexhill On Sea with a long lease were worth £267,600. The mid-range amount of ground rent was £65 billed yearly. The lease terminated on 13 April 2092. Taking into account 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of legals.