Bexhill leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Bexhill will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Bexhill with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| 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. |
The conveyancing solicitors 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 lawyer we work with provide it.
Eliot was the the leasehold owner of a conversion apartment in Bexhill on the market with a lease of a little over fifty eight years remaining. Eliot informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr Jude Bernard acquired a one bedroom flat in Bexhill in March 2009. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical flats in Bexhill with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected annually. The lease terminated on 22 April 2101. Considering the 75 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last Christmas we were called by Mr R Jackson , who moved into a basement flat in Bexhill in February 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative properties in Bexhill with a long lease were worth £173,800. The average ground rent payable was £60 invoiced quarterly. The lease termination date was on 16 March 2081. Having 55 years outstanding we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.