The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Bexhill may extend the lease for an additional 90 years under Leasehold Reform legislation. Do think carefully before delaying your Bexhill lease extension. Postponing that expense now simply increases the premium you will ultimately have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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 conveyancer we work with provide it.
Rory was the the leasehold owner of a 2 bedroom apartment in Bexhill being marketed with a lease of just over 72 years left. Rory on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Rory to invoke his statutory right. Rory obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2014 we were called by Mr and Mrs. U Bailey who, having acquired a basement apartment in Bexhill in September 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar properties in Bexhill with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 billed monthly. The lease terminated on 24 September 2105. Taking into account 79 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
Mr Finn Martinez moved into a purpose-built apartment in Bexhill in October 2012. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar premises in Bexhill with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 collected annually. The lease ended in 2085. Given that there were 59 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including costs.