For anyone whose Lewes home is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold premises in Lewes with in excess of one hundred years remaining on the lease are sometimes referred to as ‘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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Lewes,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lewes valuers.
Dexter was the the leasehold proprietor of a studio flat in Lewes on the market with a lease of a little over 59 years unexpired. Dexter on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2013 we were called by Dr Harrison Díaz who, having bought a first floor flat in Lewes in August 1999. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar properties in Lewes with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease came to a finish in 2096. Considering the 71 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
Last Spring we were e-mailed by Ms U Rivera , who took over the lease of a garden flat in Lewes in November 2007. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Lewes with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2075. Taking into account 50 years outstanding we calculated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including professional charges.