Unfortunately that a St Leonards On Sea residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the St Leonards On Sea property market.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 falls lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in St Leonards On Sea will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in St Leonards On Sea with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying 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. |
| 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 |
| 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. |
The conveyancing solicitors that we work with handle 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.
In recent months Harrison, came seriously close to the 80-year threshold with the lease on his purpose- built apartment in St Leonards On Sea. In buying his property 18 years ago, the unexpired term was of minimal bearing. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Harrison arranged for a lease extension just ahead of time last April. Harrison and the freeholder via the management company in the end settled on the final figure of £5,500 . If he had missed the deadline, the sum would have become more costly by a minimum £850.
Last Summer we were phoned by Mr Aaron Bonnet , who bought a garden apartment in St Leonards On Sea in January 2011. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar residencies in St Leonards On Sea with 100 year plus lease were valued about £256,600. The average amount of ground rent was £60 collected every twelve months. The lease ran out on 15 May 2077. Considering the 52 years remaining we approximated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of legals.
In 2011 we were contacted by Dr N Turner who, having owned a first floor apartment in St Leonards On Sea in July 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar homes in St Leonards On Sea with 100 year plus lease were worth £218,000. The average ground rent payable was £45 invoiced annually. The lease elapsed on 20 January 2088. Having 63 years unexpired we estimated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of costs.