Uckfield leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Uckfield enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Uckfield you should check if your lease has between seventy and 90 years remaining. 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 will incur is what is known as a marriage value
Leasehold premises in Uckfield with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
The conveyancing solicitors that we work with undertake Uckfield 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 conveyancer we work with provide it.
Sam was the the leasehold proprietor of a studio flat in Uckfield being marketed with a lease of fraction over 59 years remaining. Sam informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be due on a lease extension were Sam to exercise his statutory right. Sam procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last Christmas we were approach by Mr and Mrs. B Baker , who acquired a ground floor apartment in Uckfield in May 1995. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar flats in Uckfield with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 billed yearly. The lease ran out in 2104. Considering the 78 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
In 2009 we were phoned by Dr Y Sharif who, having bought a ground floor apartment in Uckfield in May 2001. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical properties in Uckfield with a long lease were worth £267,600. The mid-range ground rent payable was £65 invoiced annually. The lease ran out on 3 January 2093. Given that there were 67 years remaining we approximated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of legals.