Bexhill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Bexhill residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bexhill you would be well advised to see if your lease has between 70 and 90 years remaining. There are good reasons why a Bexhill leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Bexhill leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her one bedroom apartment in Bexhill, Sophia started the lease extension process as the eighty year threshold was quickly approaching. The lease extension was finalised in February 2015. The freeholder’s charges were negotiated to about 600 pounds.
Last Christmas we were approach by Mr Henry Ramírez , who owned a ground floor apartment in Bexhill in November 1999. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Identical premises in Bexhill with 100 year plus lease were valued around £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed in 2082. Considering the 56 years remaining we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 not including expenses.
Last March we were e-mailed by Dr Georgina White , who took over the lease of a one bedroom flat in Bexhill in May 2005. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable flats in Bexhill with an extended lease were valued about £242,600. The average ground rent payable was £45 invoiced monthly. The lease ended in 2093. Having 67 years remaining we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of legals.