When it comes to long leasehold property in Peacehaven, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Residents in Peacehaven with a lease approaching 81 years unexpired should seriously consider extending it without delay. When the lease term has below eighty years outstanding, under the current legislation the landlord is entitled to calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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; |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 also be not less than 75 years at the outset of the mortgage. |
Retaining our service gives you enhanced control over the value of your Peacehaven leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful correspondence with the landlord of her studio flat in Peacehaven, Isabel commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The transaction was concluded in January 2010. The freeholder’s charges were negotiated to approximately six hundred GBP.
Last Christmas we were phoned by Mrs S Lee , who owned a basement flat in Peacehaven in October 2003. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable flats in Peacehaven with an extended lease were in the region of £189,000. The mid-range ground rent payable was £55 collected quarterly. The lease concluded in 2078. Having 53 years left we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
In 2011 we were contacted by Mr and Mrs. P Stewart who, having acquired a purpose-built apartment in Peacehaven in February 2005. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar properties in Peacehaven with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 invoiced per annum. The lease expired in 2098. Having 73 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.