The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Pevensey may extend the lease for a further ninety years in accordance with legislation. Please think carefully before delaying your Pevensey lease extension. Postponing that expense now simply escalates the premium you will eventually be required to pay for a lease extension.
Leasehold premises in Pevensey with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Halifax | 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Pevensey can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Pevensey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the freeholder of her basement apartment in Pevensey, Courtney initiated the lease extension process just as the lease was coming close to the crucial 80-year threshold. The legal work completed in February 2007. The landlord’s costs were restricted to under 600 pounds.
Mrs O Morgan completed a newly refurbished apartment in Pevensey in November 2007. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable properties in Pevensey with an extended lease were in the region of £191,000. The average ground rent payable was £65 billed per annum. The lease termination date was on 9 November 2084. Given that there were 58 years left we calculated the premium to the landlord to extend the lease to be within £23,800 and £27,400 plus costs.
Dr N Martinez purchased a studio flat in Pevensey in September 2010. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Pevensey with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease concluded in 2095. Considering the 69 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.