Chances are that if you own a flat in Bexhill you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with handle Bexhill 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.
Aaron was the the leasehold proprietor of a 2 bedroom apartment in Bexhill on the market with a lease of just over fifty eight years unexpired. Aaron on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Aaron to invoke his statutory right. Aaron obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Mr M Thompson moved into a studio flat in Bexhill in February 2012. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Bexhill with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 billed per annum. The lease expired in 2085. Given that there were 59 years unexpired we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.
In 2011 we were phoned by Mrs A Bonnet who, having moved into a first floor flat in Bexhill in January 2004. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Bexhill with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 invoiced annually. The lease ran out on 8 March 2096. Taking into account 70 years remaining we approximated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 not including costs.