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 which entitles qualifying Pevensey residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Pevensey you would be well advised to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Pevensey with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Pevensey,the lease extension experts 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.
During the course of the last few months Andrew, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Pevensey. Having bought his home twenty years previously, the lease term was of no importance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Andrew was able to extend his lease at the eleventh hour last January. Andrew and the landlord in the end agreed on an amount of £5,500 . If the lease had dropped to less than 80 years, the sum would have escalated by a minimum £875.
In 2013 we were called by Mr and Mrs. K Ramírez who, having completed a recently refurbished flat in Pevensey in October 2005. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparable premises in Pevensey with an extended lease were in the region of £264,000. The average ground rent payable was £60 invoiced annually. The lease lapsed on 8 September 2079. Considering the 53 years as a residual term we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including expenses.
Last Winter we were contacted by Mr and Mrs. A Laurent , who owned a ground floor apartment in Pevensey in June 1999. The question was if we could estimate the price would be for a 90 year lease extension. Similar residencies in Pevensey with a long lease were valued around £225,400. The average amount of ground rent was £45 collected per annum. The lease came to a finish on 15 August 2090. Taking into account 64 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of legals.