Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Lewes. Inevitably, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Lewes have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Please give due deliberation before putting off your Lewes lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Lewes,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lewes valuers.
Two years ago Callum, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Lewes. Having purchased his property two decades ago, the lease term was of little relevance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Callum was able to extend his lease at the eleventh hour in March. Callum and the freeholder subsequently settled on sum of £6,000 . If the lease had gone below 80 years, the sum would have become more exhorbitant by at least £1,000.
Last November we were e-mailed by Mr N Kelly , who completed a garden apartment in Lewes in February 2010. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparative properties in Lewes with 100 year plus lease were in the region of £220,400. The mid-range ground rent payable was £45 billed monthly. The lease expiry date was in 2089. Taking into account 64 years left we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 not including expenses.
In 2012 we were called by Mr and Mrs. A Norbert who, having was assigned a lease of a purpose-built flat in Lewes in September 2003. The question was if we could approximate the price could be to extend the lease by ninety years. Identical homes in Lewes with a long lease were worth £270,000. The mid-range amount of ground rent was £55 collected annually. The lease came to a finish on 7 May 2100. Taking into account 75 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.