Pevensey 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 Pevensey residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Pevensey you would be well advised to see if your lease has between seventy and ninety years remaining. There are good reasons why a Pevensey leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Pevensey with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Pevensey,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 in-depth market knowledge and the close ties they enjoy with Pevensey valuers.
Two years ago Felix, came precariously close to the 80-year mark with the lease on his studio apartment in Pevensey. In buying his property 19 years ago, the lease term was of minimal interest. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. Felix extended the lease just ahead of time in September. Felix and the freeholder in the end agreed on sum of £5,500 . If the lease had slid to less than 80 years, the price would have increased by a minimum £1,150.
In 2009 we were contacted by Mr and Mrs. U Wilson who, having took over the lease of a one bedroom flat in Pevensey in March 1997. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative premises in Pevensey with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 invoiced monthly. The lease ran out in 2099. Having 74 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
In 2012 we were contacted by Mr L Turner who, having completed a purpose-built flat in Pevensey in February 1996. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Similar properties in Pevensey with a long lease were worth £166,400. The average ground rent payable was £60 invoiced annually. The lease ran out in 2079. Having 54 years outstanding we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus legals.