Pevensey leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Pevensey will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent 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 many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Pevensey,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pevensey valuers.
Trailing protracted correspondence with the freeholder of her ground floor apartment in Pevensey, Anna commenced the lease extension process as the 80 year threshold was swiftly nearing. The transaction was finalised in September 2005. The landlord’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Mr and Mrs. M Allen who, having bought a basement apartment in Pevensey in April 2009. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical premises in Pevensey with an extended lease were valued around £265,000. The average amount of ground rent was £50 billed annually. The lease came to a finish in 2099. Given that there were 73 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Dr Harvey Thomas purchased a garden flat in Pevensey in August 2007. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Similar residencies in Pevensey with an extended lease were in the region of £264,000. The mid-range ground rent payable was £60 billed every twelve months. The lease terminated in 2079. Given that there were 53 years as a residual term we approximated the premium to the landlord to extend the lease to be between £37,100 and £42,800 plus fees.