Main reasons to commence your Pevensey lease extension

Why you should commence your Pevensey lease extension today:

A Pevensey lease depreciates with the years remaining on the lease.

Pevensey leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Pevensey enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pevensey you must investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Pevensey flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is actioned without delay

Pevensey property with a lease extension has roughly the same value as a freehold

Leasehold premises in Pevensey with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions will not issue a mortgage on a short lease

Banks and building societies are really restricting their approach as regards to homes in Pevensey with short leases. For example you may find that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus limiting your market.

What makes us experts in Pevensey lease extensions?

The conveyancing solicitors that we work with procure Pevensey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Pevensey Lease Extension Example Cases:

Tommy, Pevensey, East Sussex

Last October Tommy, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Pevensey. In buying his flat two decades ago, the unexpired term was of minimal interest. Luckily, he realised he needed to take action soon on a lease extension. Tommy was able to extend his lease just under the wire in May. Tommy and the freeholder in the end settled on a premium of £6,000 . If the lease had slipped to less than 80 years, the price would have gone up by at least £925.

Pevensey case:

In 2012 we were e-mailed by Dr Lucy Mercier who, having completed a one bedroom flat in Pevensey in May 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical properties in Pevensey with an extended lease were in the region of £245,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded in 2094. Taking into account 68 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.

Pevensey case:

Last Spring we were approach by Mrs Aimee Reed , who bought a ground floor flat in Pevensey in October 1995. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Pevensey with a long lease were worth £285,000. The average ground rent payable was £55 billed yearly. The lease expired on 20 November 2105. Having 79 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.