On the balance of probabilities where you own a flat in Pevensey you actually own a long leasehold interest over your property
Leasehold properties in Pevensey with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Pevensey 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.
Jackson owned a high value apartment in Pevensey being marketed with a lease of fraction over 59 years unexpired. Jackson informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Last Christmas we were e-mailed by Mr and Mrs. D Bertrand , who took over the lease of a one bedroom flat in Pevensey in July 1998. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable properties in Pevensey with a long lease were valued around £270,000. The average ground rent payable was £55 collected monthly. The lease elapsed in 2100. Considering the 75 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last month we were called by Mr and Mrs. P Wilson , who moved into a studio apartment in Pevensey in August 2002. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative properties in Pevensey with a long lease were worth £173,800. The mid-range amount of ground rent was £65 billed yearly. The lease ended on 5 October 2080. Given that there were 55 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.