Main reasons to commence your Pevensey lease extension

Why you should start your Pevensey lease extension today:

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

Pevensey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most 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. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.

Lenders will not grant a mortgage with a short lease

Lending institutions have set criteria when lending monies charged on leasehold property. Some will simply refuse lend at all once the remaining lease term slips under a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than 75 years suitable security. In addition to impacting your ability to sell, it is also relevant where you are intending to remortgage your Pevensey property.

What makes us experts in Pevensey lease extensions?

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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Pevensey Lease Extension Case Studies:

Hunter, Pevensey, East Sussex,

Hunter was the the leasehold proprietor of a 2 bedroom flat in Pevensey on the market with a lease of a few days over 59 years left. Hunter informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Hunter to exercise his statutory right. Hunter obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.

Pevensey case:

Mrs Kelsey Clark completed a one bedroom flat in Pevensey in May 2004. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Pevensey with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ended on 15 January 2098. Taking into account 72 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.

Pevensey case:

Last Christmas we were phoned by Mr Luca García , who purchased a one bedroom flat in Pevensey in January 2001. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparable flats in Pevensey with 100 year plus lease were valued around £261,600. The average ground rent payable was £60 invoiced quarterly. The lease came to a finish in 2078. Given that there were 52 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus professional charges.