Polegate leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be due. Flat owners in Polegate will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Polegate 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 lawyer we work with provide it.
Blake owned a 2 bedroom flat in Polegate on the market with a lease of a little over 59 years left. Blake informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Ms M Gómez purchased a basement flat in Polegate in February 2011. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable residencies in Polegate with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 billed monthly. The lease ended on 1 August 2100. Having 76 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
Mr Matthew Petit was assigned a lease of a studio flat in Polegate in August 1995. The question was if we could estimate the premium could be to extend the lease by an additional years. Similar homes in Polegate with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed in 2080. Given that there were 56 years outstanding we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including costs.