For those whose Bexhill On Sea property is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Lease extensions in Bexhill On Sea can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Bexhill On Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Connor, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Bexhill On Sea. Having purchased his property two decades ago, the lease term was of minimal relevance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Connor was able to extend his lease just ahead of time in January. Connor and the freeholder via the management company ultimately agreed on the final figure of £5,000 . If the lease had slipped to less than 80 years, the figure would have escalated by at least £950.
Mr H Rodríguez completed a purpose-built flat in Bexhill On Sea in March 1999. The question was if we could estimate the premium could be to extend the lease by ninety years. Comparable flats in Bexhill On Sea with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 invoiced quarterly. The lease elapsed in 2080. Given that there were 54 years as a residual term we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 plus costs.
Last year we were phoned by Ms J Vincent , who acquired a garden apartment in Bexhill On Sea in May 2002. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Identical homes in Bexhill On Sea with an extended lease were valued about £295,000. The average ground rent payable was £45 invoiced monthly. The lease terminated in 2100. Taking into account 74 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.