The market value of a leasehold property in Pevensey depends on how many years the lease has left to run. If it is near to or less than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed in advance of the 80 year cut off point. Statute enables Pevensey qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Pevensey leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Kyle, started to get close to the 80-year threshold with the lease on his purpose- built flat in Pevensey. In buying his flat twenty years ago, the length of the lease was of no bearing. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Kyle extended the lease just under the wire last July. Kyle and the landlord who owned the flat above eventually settled on a premium of £6,000 . If he not met the deadline, the price would have become more exhorbitant by a minimum £1,125.
In 2014 we were e-mailed by Mr and Mrs. T Carter who, having owned a purpose-built flat in Pevensey in June 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Pevensey with an extended lease were in the region of £210,600. The average amount of ground rent was £45 billed every twelve months. The lease lapsed in 2087. Having 62 years outstanding we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus costs.
Last Spring we were contacted by Mr Teddy Vincent , who purchased a ground floor flat in Pevensey in January 1998. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative properties in Pevensey with a long lease were worth £265,000. The mid-range amount of ground rent was £50 billed quarterly. The lease concluded on 5 January 2098. Taking into account 73 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.