It’s a harsh certainty that a Lewes residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Lewes property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. The majority of flat owners in Lewes will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Lewes with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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 |
| Yorkshire 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. |
Lease extensions in Lewes can be a difficult process. We recommend you get professional help from a conveyancer and surveyor 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 in-depth market knowledge dealing with Lewes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tyler was the the leasehold proprietor of a studio flat in Lewes on the market with a lease of fraction over 59 years unexpired. Tyler on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Tyler to exercise his statutory right. Tyler procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Last month we were phoned by Mr P André , who moved into a one bedroom apartment in Lewes in January 1999. The question was if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Lewes with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £60 collected per annum. The lease lapsed on 21 January 2106. Given that there were 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Ms Charlotte Laurent was assigned a lease of a studio flat in Lewes in October 2010. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative homes in Lewes with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 billed annually. The lease ran out on 27 August 2086. Taking into account 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of legals.