Unfortunately that a Bexhill residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Bexhill property market.Once your lease nears 85ish years, you should 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 slips below 80 years - otherwise a higher premium will be due. Most leasehold owners in Bexhill will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Bexhill with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
| 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. |
Engaging our service will provide you enhanced control over the value of your Bexhill leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold owner of a studio apartment in Bexhill on the market with a lease of a little over sixty years unexpired. Caleb informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Caleb to invoke his statutory right. Caleb procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. V Khan completed a one bedroom flat in Bexhill in March 1999. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Similar properties in Bexhill with an extended lease were in the region of £200,800. The average ground rent payable was £65 collected annually. The lease elapsed in 2086. Given that there were 60 years outstanding we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of expenses.
Mr Mason Torres acquired a garden flat in Bexhill in January 2010. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Identical residencies in Bexhill with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 billed annually. The lease ended in 2097. Considering the 71 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.