Saltdean leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Flat owners in Saltdean will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Saltdean with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Saltdean leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted correspondence with the freeholder of her purpose-built flat in Saltdean, Morgan initiated the lease extension process just as her lease was nearing the all-important 80-year deadline. The lease extension completed in June 2006. The landlord’s charges were kept to an absolute minimum.
Last January we were phoned by Dr G André , who bought a basement apartment in Saltdean in October 2007. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Saltdean with a long lease were valued around £189,000. The average amount of ground rent was £55 billed per annum. The lease ran out in 2079. Considering the 53 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus expenses.
Last Christmas we were phoned by Mr E Moore , who bought a studio flat in Saltdean in March 2005. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Similar flats in Saltdean with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected every twelve months. The lease ran out in 2099. Having 73 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.