Main reasons to commence your Pevensey lease extension

Main reasons to commence your Pevensey lease extension today:

Increase your lease and increase your Pevensey property value

Pevensey leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Pevensey enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pevensey you would be well advised to see if your lease has between 70 and 90 years left. There are good reasons why a Pevensey flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

Leasehold premises in Pevensey with in excess of one hundred years unexpired on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may decide not to finance a property with a short lease

The propensity since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Pevensey?

The conveyancers that we work with undertake 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.

Pevensey Lease Extension Example Cases:

Sebastian, Pevensey, East Sussex,

Sebastian was the the leasehold owner of a 2 bedroom apartment in Pevensey on the market with a lease of a few days over fifty eight years outstanding. Sebastian informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.

Pevensey case:

In 2009 we were phoned by Mr Ibrahim Watson who, having took over the lease of a first floor flat in Pevensey in September 2007. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable residencies in Pevensey with a long lease were in the region of £275,000. The average amount of ground rent was £55 invoiced yearly. The lease finished on 17 March 2102. Having 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.

Pevensey case:

Mr and Mrs. S Jones bought a purpose-built flat in Pevensey in February 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Pevensey with 100 year plus lease were valued about £176,200. The average ground rent payable was £65 invoiced every twelve months. The lease termination date was in 2082. Taking into account 56 years outstanding we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 not including costs.