St Leonards On Sea leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying St Leonards On Sea residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in St Leonards On Sea you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in St Leonards On Sea,the lease extension lawyers 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.
Daniel was the the leasehold proprietor of a 2 bedroom flat in St Leonards On Sea being sold with a lease of a few days over 59 years remaining. Daniel on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Daniel to invoke his statutory right. Daniel procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Ms I Watson acquired a ground floor apartment in St Leonards On Sea in January 2011. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparable residencies in St Leonards On Sea with a long lease were worth £260,000. The average ground rent payable was £50 invoiced yearly. The lease end date was in 2097. Given that there were 72 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Mrs U Sánchez purchased a studio apartment in St Leonards On Sea in May 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar premises in St Leonards On Sea with 100 year plus lease were valued around £256,600. The average amount of ground rent was £60 billed annually. The lease elapsed on 3 November 2077. Having 52 years left we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 not including costs.