With a long leasehold premises in Hove, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Residents in Hove with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has below 80 years outstanding, under the current legislation the freeholder is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Hove with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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 |
The lawyers that we work with procure Hove 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.
Half a year ago Sebastian, came dangerously near to the eighty-year threshold with the lease on his leasehold flat in Hove. Having purchased his flat two decades ago, the length of the lease was of little bearing. by good luck, he realised he would imminently be paying way over the odds for a lease extension. Sebastian was able to extend his lease at the eleventh hour last July. Sebastian and the freeholder in the end settled on an amount of £5,500 . If the lease had slipped below 80 years, the premium would have escalated by at least £1,000.
Mr and Mrs. H Watson moved into a ground floor flat in Hove in July 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Hove with a long lease were worth £206,200. The mid-range amount of ground rent was £60 billed yearly. The lease ended in 2082. Taking into account 56 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.
In 2014 we were contacted by Mr and Mrs. L Smith who, having purchased a garden apartment in Hove in April 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable premises in Hove with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 collected monthly. The lease terminated on 8 July 2102. Taking into account 76 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.