With a long 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 consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years left. Residents in St Leonards On Sea with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. Once a lease has fewer than 80 years remaining, under the current Act the landlord is entitled to calculate and demand a larger amount, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your St Leonards On Sea leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her first floor apartment in St Leonards On Sea, Isabelle initiated the lease extension process as the 80 year mark was fast coming. The lease extension was concluded in April 2005. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were phoned by Mrs Sophia Ricardo who, having was assigned a lease of a recently refurbished flat in St Leonards On Sea in October 2001. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Identical properties in St Leonards On Sea with 100 year plus lease were valued about £203,200. The mid-range ground rent payable was £65 billed annually. The lease ended in 2086. Taking into account 61 years remaining we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of expenses.
In 2009 we were contacted by Mrs Jessica Bennett who, having was assigned a lease of a first floor flat in St Leonards On Sea in February 2005. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar residencies in St Leonards On Sea with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease ran out in 2097. Taking into account 72 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.