Unfortunately that a St Leonards On Sea residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the St Leonards On Sea property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. The majority of leasehold owners in St Leonards On Sea will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in St Leonards On Sea with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a landlord in St Leonards On Sea,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Leonards On Sea valuers.
Following lengthy correspondence with the freeholder of her studio apartment in St Leonards On Sea, Amelia initiated the lease extension process just as the lease was nearing the all-important eighty-year deadline. The lease extension completed in November 2013. The freeholder’s charges were restricted to under 700 pounds.
Last Christmas we were contacted by Mr W Young , who purchased a studio apartment in St Leonards On Sea in June 1995. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable properties in St Leonards On Sea with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 billed per annum. The lease ended in 2088. Given that there were 62 years left we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including fees.
In 2013 we were phoned by Dr Tyler Sharif who, having moved into a basement flat in St Leonards On Sea in June 2008. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative premises in St Leonards On Sea with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease elapsed on 19 April 2099. Considering the 73 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.