St Leonards On Sea leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying St Leonards On Sea residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in St Leonards On Sea you should see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in St Leonards On Sea with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake St Leonards On Sea 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.
Two years ago Jack, came perilously near to the 80-year threshold with the lease on his first floor apartment in St Leonards On Sea. In buying his flat 19 years ago, the lease term was of minimal interest. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Jack extended the lease just under the wire last January. Jack and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If he had missed the deadline, the amount would have become more costly by a minimum £900.
In 2010 we were e-mailed by Mr and Mrs. E Wright who, having purchased a studio flat in St Leonards On Sea in November 1996. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative premises in St Leonards On Sea with an extended lease were valued about £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed in 2081. Taking into account 57 years outstanding we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus professional charges.
Last year we were approach by Dr S Thompson , who owned a recently refurbished apartment in St Leonards On Sea in April 2002. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparative residencies in St Leonards On Sea with a long lease were valued around £245,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 13 October 2092. Given that there were 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.