Peacehaven leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Peacehaven will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Peacehaven with in excess of 100 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 buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The lawyers that we work with undertake Peacehaven 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.
During the course of the last few months Ethan, started to get near to the eighty-year threshold with the lease on his garden flat in Peacehaven. Having purchased his home 18 years ago, the lease term was of minimal relevance. Thankfully, he recognised he needed to take action soon on Extending the lease. Ethan was able to extend his lease just under the wire in May. Ethan and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If the lease had slid lower than 80 years, the price would have increased by at least £925.
In 2014 we were approached by Mr and Mrs. D Wood who, having bought a ground floor apartment in Peacehaven in November 1998. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparable homes in Peacehaven with 100 year plus lease were in the region of £206,200. The average amount of ground rent was £60 invoiced yearly. The lease termination date was on 9 July 2082. Considering the 56 years remaining we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including professional charges.
Last Summer we were e-mailed by Mr and Mrs. B Clarke , who owned a recently refurbished apartment in Peacehaven in November 2007. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable homes in Peacehaven with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 25 June 2102. Considering the 76 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.