Peacehaven leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Peacehaven residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Peacehaven you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Peacehaven,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Peacehaven valuers.
Off the back of lengthy negotiations with the landlord of her first floor flat in Peacehaven, Caitlin initiated the lease extension process just as her lease was approaching the crucial 80-year threshold. The legal work was concluded in March 2007. The freeholder’s fees were negotiated to below five hundred pounds.
Mrs Courtney Richardson took over the lease of a one bedroom apartment in Peacehaven in July 2002. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable premises in Peacehaven with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 invoiced monthly. The lease lapsed in 2077. Taking into account 52 years outstanding we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.
Mrs Jennifer Gray bought a basement apartment in Peacehaven in November 1999. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Similar properties in Peacehaven with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease elapsed on 11 May 2097. Taking into account 72 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of fees.