Unfortunately that a Bexhill On Sea residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Bexhill On Sea property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Bexhill On Sea will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Bexhill On Sea 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 conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the freeholder of her one bedroom flat in Bexhill On Sea, Alisha commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was finalised in October 2009. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. A Vincent purchased a studio apartment in Bexhill On Sea in May 2007. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar homes in Bexhill On Sea with a long lease were worth £205,000. The average ground rent payable was £50 invoiced monthly. The lease end date was on 28 February 2104. Having 79 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
Dr G Sharif acquired a first floor flat in Bexhill On Sea in January 2002. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar properties in Bexhill On Sea with a long lease were valued about £275,000. The average ground rent payable was £65 invoiced monthly. The lease ended in 2093. Taking into account 68 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.