As the the remaining lease term of a Pevensey domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Pevensey will qualify for this right; however a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Pevensey with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you enhanced control over the value of your Pevensey leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ali was the the leasehold owner of a high value flat in Pevensey on the market with a lease of a few days over 61 years unexpired. Ali informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Ali to invoke his statutory right. Ali procured expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
In 2013 we were called by Mr and Mrs. U Nelson who, having purchased a first floor apartment in Pevensey in November 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Pevensey with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 invoiced monthly. The lease lapsed on 7 October 2091. Given that there were 66 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
In 2014 we were phoned by Dr I Gray who, having was assigned a lease of a one bedroom apartment in Pevensey in January 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Pevensey with an extended lease were valued about £280,000. The average ground rent payable was £55 billed yearly. The lease concluded in 2102. Given that there were 77 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.