Peacehaven leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Peacehaven will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Peacehaven with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Retaining our service will provide you better control over the value of your Peacehaven leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the landlord of her garden flat in Peacehaven, Melissa commenced the lease extension process just as the lease was approaching the critical 80-year deadline. The lease extension was finalised in March 2005. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. U Dupont who, having took over the lease of a newly refurbished flat in Peacehaven in November 2001. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Comparative homes in Peacehaven with a long lease were worth £210,000. The mid-range ground rent payable was £50 collected quarterly. The lease end date was on 15 July 2105. Considering the 80 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2014 we were called by Dr V Mercier who, having was assigned a lease of a first floor flat in Peacehaven in January 2000. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Similar premises in Peacehaven with an extended lease were valued around £280,000. The average ground rent payable was £45 billed per annum. The lease finished on 9 July 2094. Having 69 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.