St Leonards On Sea residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold premises in St Leonards On Sea with more than 100 years remaining 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 to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service will provide you enhanced control over the value of your St Leonards On Sea leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Aarav, started to get close to the eighty-year mark with the lease on his ground floor apartment in St Leonards On Sea. Having bought his home 19 years ago, the unexpired term was of minimal interest. Luckily, he realised he would soon be paying an inflated amount for a lease extension. Aarav was able to extend his lease just under the wire in March. Aarav and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If he not met the deadline, the sum would have gone up by at least £900.
In 2009 we were approached by Mr and Mrs. J Brown who, having owned a recently refurbished apartment in St Leonards On Sea in July 2001. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparative residencies in St Leonards On Sea with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 invoiced annually. The lease came to a finish in 2079. Given that there were 53 years remaining we estimated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus expenses.
Mr Matthew Thompson acquired a basement apartment in St Leonards On Sea in March 2009. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Identical properties in St Leonards On Sea with 100 year plus lease were in the region of £220,400. The average amount of ground rent was £45 invoiced annually. The lease finished on 22 April 2090. Taking into account 64 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of costs.