The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Pevensey Bay may extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Pevensey Bay lease extension. Shelving that expense now simply escalates the price you will ultimately be required to pay to extend the lease.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Pevensey Bay,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pevensey Bay valuers.
Trailing lengthy discussions with the freeholder of her basement apartment in Pevensey Bay, Gemma started the lease extension process as the 80 year deadline was quickly approaching. The transaction was finalised in March 2007. The freeholder’s costs were negotiated to below 550 GBP.
Mr and Mrs. C Cox bought a studio apartment in Pevensey Bay in September 2010. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable flats in Pevensey Bay with a long lease were valued around £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease ended on 15 November 2097. Having 72 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
Mr and Mrs. Y André was assigned a lease of a purpose-built apartment in Pevensey Bay in February 2008. The question was if we could approximate the price would be to extend the lease by 90 years. Comparative flats in Pevensey Bay with a long lease were valued around £256,600. The average ground rent payable was £60 billed yearly. The lease lapsed in 2077. Taking into account 52 years remaining we estimated the compensation to the landlord to extend the lease to be within £41,800 and £48,400 not including professional charges.