Unfortunately that a Peacehaven residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Peacehaven property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Peacehaven will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Peacehaven with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Peacehaven leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kyle was the the leasehold owner of a studio flat in Peacehaven being sold with a lease of a few days over 59 years remaining. Kyle on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and secured an acceptable deal informally and sell the flat.
Dr O Young moved into a garden flat in Peacehaven in March 2002. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar properties in Peacehaven with an extended lease were in the region of £206,200. The mid-range ground rent payable was £60 collected quarterly. The lease ended in 2080. Considering the 56 years left we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.
Last Autumn we were approach by Mr and Mrs. A Khan , who moved into a garden apartment in Peacehaven in September 2001. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Peacehaven with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed on 19 September 2100. Having 76 years unexpired we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.