The value of Pevensey leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is below than 80 years
Leasehold properties in Pevensey with in excess of one hundred 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| 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. |
Retaining our service will provide you increased control over the value of your Pevensey leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Isaac owned a 2 bedroom apartment in Pevensey on the market with a lease of a few days over 59 years remaining. Isaac on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last Summer we were called by Dr Kayleigh Wright , who took over the lease of a one bedroom flat in Pevensey in February 2003. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable properties in Pevensey with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired on 12 May 2103. Given that there were 77 years unexpired we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.
Mr and Mrs. A David completed a one bedroom flat in Pevensey in September 2012. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable residencies in Pevensey with a long lease were worth £183,600. The average amount of ground rent was £65 invoiced per annum. The lease concluded on 16 March 2083. Taking into account 57 years left we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.