Unfortunately that a Pevensey residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Pevensey property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Pevensey will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred 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 premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers 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.
After lengthy negotiations with the freeholder of her ground floor apartment in Pevensey, Niamh commenced the lease extension process just as her lease was nearing the crucial 80-year threshold. The legal work completed in May 2010. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were contacted by Dr Emma Morris , who owned a ground floor flat in Pevensey in February 2003. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Pevensey with a long lease were worth £218,000. The mid-range amount of ground rent was £45 billed yearly. The lease came to a finish on 19 October 2088. Considering the 63 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus professional charges.
Last Autumn we were approach by Dr Jessica Garcia , who was assigned a lease of a purpose-built flat in Pevensey in April 2004. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar properties in Pevensey with an extended lease were in the region of £270,000. The average ground rent payable was £55 collected monthly. The lease expired in 2099. Considering the 74 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.