Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Bexhill. Clearly, the term of lease left shortens as time goes by. This is often ignored and only becomes a problem when the residence has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Bexhill have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Do give careful consideration before delaying your Bexhill lease extension. Putting off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with procure Bexhill 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.
Subsequent to lengthy correspondence with the landlord of her studio flat in Bexhill, Kayleigh started the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The legal work completed in April 2015. The freeholder’s costs were restricted to slightly above 500 pounds.
Last month we were phoned by Mr and Mrs. E Girard , who acquired a purpose-built apartment in Bexhill in February 2002. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Similar properties in Bexhill with an extended lease were worth £208,200. The average ground rent payable was £65 collected annually. The lease ran out on 14 January 2086. Given that there were 61 years unexpired we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus expenses.
Mr and Mrs. F Morris owned a studio flat in Bexhill in October 1999. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical homes in Bexhill with an extended lease were valued about £260,000. The mid-range amount of ground rent was £50 collected per annum. The lease finished on 15 February 2097. Taking into account 72 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.