With a domestic leasehold property in St Leonards On Sea, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Leasehold owners in St Leonards On Sea with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has less than eighty years left, under the current legislation the freeholder can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
The conveyancers that we work with undertake St Leonards On Sea 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 conveyancing solicitor we work with provide it.
Omar was the the leasehold owner of a conversion flat in St Leonards On Sea on the market with a lease of just over fifty eight years outstanding. Omar informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Omar to exercise his statutory right. Omar obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
In 2010 we were contacted by Mrs W Norbert who, having moved into a one bedroom flat in St Leonards On Sea in March 2000. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar residencies in St Leonards On Sea with an extended lease were worth £235,200. The mid-range ground rent payable was £45 collected annually. The lease elapsed in 2092. Taking into account 66 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
In 2012 we were approached by Dr Stephanie Wright who, having owned a basement flat in St Leonards On Sea in January 1996. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar homes in St Leonards On Sea with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease expiry date was on 15 October 2103. Taking into account 77 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.