The closer a domestic lease in Bexhill gets to zero years unexpired, the more it reduces the value of the property. If the lease has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Many flat owners in Bexhill will qualify for this right; however a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The lawyers that we work with handle 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 unsuccessful discussions with the freeholder of her leasehold flat in Bexhill, Mia initiated the lease extension process as the 80 year deadline was rapidly nearing. The transaction completed in May 2010. The landlord’s costs were kept to an absolute minimum.
Dr N Fournier took over the lease of a studio apartment in Bexhill in March 2012. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Bexhill with a long lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease ran out on 3 November 2078. Considering the 53 years outstanding we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including legals.
In 2009 we were contacted by Mr and Mrs. L Martínez who, having moved into a garden flat in Bexhill in January 2006. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Bexhill with 100 year plus lease were valued around £225,400. The average amount of ground rent was £45 invoiced per annum. The lease came to a finish in 2089. Given that there were 64 years outstanding we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including professional charges.