Pevensey Bay leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Pevensey Bay will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Pevensey Bay with in excess of one hundred years left on the lease are often 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 service charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Pevensey Bay,the lease extension experts 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 Pevensey Bay valuers.
Last Summer Max, started to get close to the 80-year threshold with the lease on his basement flat in Pevensey Bay. Having purchased his property two decades ago, the lease term was of minimal concern. As luck would have it, he realised he needed to take steps soon on a lease extension. Max was able to extend his lease just ahead of time last August. Max and the freeholder via the management company subsequently settled on sum of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,125.
In 2009 we were approached by Dr C François who, having bought a basement flat in Pevensey Bay in February 2011. The question was if we could approximate the premium would be for a ninety year extension to my lease. Identical premises in Pevensey Bay with an extended lease were valued around £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended on 2 November 2089. Given that there were 63 years left we estimated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 not including expenses.
Dr I Bennett took over the lease of a one bedroom flat in Pevensey Bay in November 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable properties in Pevensey Bay with 100 year plus lease were valued around £265,000. The average ground rent payable was £50 collected annually. The lease expired in 2099. Having 73 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.