Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Pevensey. Clearly, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Pevensey have the right to extend the lease for a further ninety years under Leasehold Reform legislation. You should give due consideration before putting off your Pevensey lease extension. Putting off that expense now likely increases the price you will ultimately incur to extend your lease
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
Lease extensions in Pevensey can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Pevensey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Muhammad was the the leasehold proprietor of a 2 bedroom apartment in Pevensey being sold with a lease of a little over fifty eight years unexpired. Muhammad on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
In 2012 we were contacted by Mr and Mrs. Y Hill who, having moved into a basement apartment in Pevensey in July 1995. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative flats in Pevensey with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced yearly. The lease concluded on 27 November 2076. Considering the 50 years left we estimated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including expenses.
In 2012 we were contacted by Mr and Mrs. P Davis who, having purchased a studio apartment in Pevensey in July 2000. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar residencies in Pevensey with a long lease were worth £208,200. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 17 September 2087. Taking into account 61 years left we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of fees.