On the balance of probabilities if you own a flat in Polegate you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | 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 | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Polegate,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Polegate valuers.
In the wake of eight months of unsuccessful correspondence with the freeholder of her leasehold apartment in Polegate, Amy initiated the lease extension process as the eighty year mark was fast approaching. The lease extension completed in October 2015. The landlord’s costs were negotiated to about 700 pounds.
Last Spring we were phoned by Dr K Bell , who took over the lease of a basement flat in Polegate in July 2003. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparative residencies in Polegate with an extended lease were worth £280,000. The average ground rent payable was £55 invoiced quarterly. The lease expiry date was in 2104. Considering the 78 years left we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Last Spring we were contacted by Mr and Mrs. H Nguyen , who completed a garden flat in Polegate in May 2002. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparable flats in Polegate with 100 year plus lease were worth £183,600. The average ground rent payable was £65 billed annually. The lease lapsed in 2083. Considering the 57 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.