Saltdean leases on residential properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Saltdean will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Saltdean 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 conveyancer we work with provide it.
In the wake of 6 months of protracted correspondence with the landlord of her leasehold flat in Saltdean, Zoe commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction was concluded in August 2012. The freeholder’s charges were restricted to below 600 GBP.
In 2011 we were approached by Mr and Mrs. G Sharif who, having was assigned a lease of a one bedroom apartment in Saltdean in May 1997. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable flats in Saltdean with an extended lease were worth £257,800. The average ground rent payable was £65 collected annually. The lease finished on 19 April 2090. Taking into account 65 years outstanding we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus legals.
In 2012 we were contacted by Ms L García who, having owned a basement apartment in Saltdean in May 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Saltdean with a long lease were valued about £191,400. The average ground rent payable was £55 invoiced monthly. The lease expired on 3 June 2079. Having 54 years outstanding we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including legals.