It’s a harsh truth that a St Leonards On Sea residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the St Leonards On Sea property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in St Leonards On Sea will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your St Leonards On Sea leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year James, came seriously near to the eighty-year threshold with the lease on his one bedroom apartment in St Leonards On Sea. In buying his property two decades ago, the unexpired term was of no concern. by good luck, he realised he needed to take steps soon on Extending the lease. James arranged for a lease extension just under the wire last May. James and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had slipped lower than 80 years, the figure would have increased by a minimum £1,050.
In 2012 we were contacted by Ms J Evans who, having took over the lease of a studio flat in St Leonards On Sea in May 1996. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparable flats in St Leonards On Sea with an extended lease were valued about £275,000. The average amount of ground rent was £55 collected monthly. The lease expired on 18 February 2102. Taking into account 77 years left we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
In 2009 we were approached by Mrs Ashleigh Evans who, having was assigned a lease of a studio apartment in St Leonards On Sea in September 2008. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative properties in St Leonards On Sea with an extended lease were valued about £183,600. The mid-range amount of ground rent was £65 billed yearly. The lease ran out on 12 November 2082. Having 57 years left we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.