It’s a harsh truth that a Pevensey residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Pevensey property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Pevensey will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Pevensey with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 maintenance charges justify 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. |
| Bank of Scotland | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Irrespective of whether you are a tenant or a freeholder in Pevensey,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 experience and the close ties they enjoy with Pevensey valuers.
Trailing lengthy correspondence with the landlord of her garden flat in Pevensey, Lucy commenced the lease extension process as the eighty year deadline was quickly approaching. The transaction was finalised in September 2014. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. M Clark who, having was assigned a lease of a basement flat in Pevensey in September 2009. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative homes in Pevensey with 100 year plus lease were worth £285,000. The average ground rent payable was £55 billed annually. The lease came to a finish in 2105. Given that there were 79 years remaining we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.
Mr George Adams moved into a newly refurbished flat in Pevensey in January 2005. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Pevensey with a long lease were worth £193,400. The mid-range ground rent payable was £65 billed quarterly. The lease expired on 5 November 2085. Given that there were 59 years remaining we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of costs.