The market value of Peacehaven leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is less than 80 years
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Peacehaven,the lease extension solicitors 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 Peacehaven valuers.
Teddy owned a conversion flat in Peacehaven being sold with a lease of a little over 59 years remaining. Teddy on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Last Spring we were phoned by Mr Nathaniel Lefèvre , who acquired a garden flat in Peacehaven in February 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Peacehaven with 100 year plus lease were valued around £174,200. The average ground rent payable was £55 billed per annum. The lease ended in 2077. Taking into account 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.
Last month we were e-mailed by Dr Edward Girard , who moved into a garden apartment in Peacehaven in April 1995. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative flats in Peacehaven with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 16 May 2097. Considering the 71 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.