The market value of Peacehaven leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than eighty years
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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.
Following protracted correspondence with the freeholder of her two bedroom apartment in Peacehaven, Erin initiated the lease extension process as the 80 year deadline was fast advancing. The legal work was finalised in June 2007. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. D André who, having completed a garden apartment in Peacehaven in September 2009. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative homes in Peacehaven with a long lease were valued about £240,600. The average ground rent payable was £65 billed quarterly. The lease lapsed in 2088. Considering the 62 years unexpired we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of costs.
Last Spring we were phoned by Dr M Martin , who moved into a garden flat in Peacehaven in September 2005. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Similar homes in Peacehaven with an extended lease were valued about £174,200. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish in 2077. Given that there were 51 years left we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.