Pevensey leases on domestic deteriorating in value. Where your lease has about ninety years remaining, 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 be in place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Pevensey will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Pevensey 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you enhanced control over the value of your Pevensey leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Kyle, came precariously close to the 80-year mark with the lease on his purpose- built flat in Pevensey. Having purchased his home two decades ago, the unexpired term was of no significance. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Kyle was able to extend his lease just under the wire in August. Kyle and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had descended to less than 80 years, the figure would have escalated by at least £925.
In 2012 we were phoned by Mr and Mrs. E Pérez who, having owned a ground floor apartment in Pevensey in November 2001. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Pevensey with an extended lease were in the region of £193,400. The average amount of ground rent was £65 billed every twelve months. The lease ran out in 2084. Given that there were 59 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.
Mr and Mrs. R Adams was assigned a lease of a one bedroom apartment in Pevensey in March 1999. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar premises in Pevensey with an extended lease were valued around £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease finished on 24 October 2095. Given that there were 70 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.