Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in St Leonards On Sea. Inevitably, the term of lease left shortens over time. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in St Leonards On Sea have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. You should give careful consideration before putting off your St Leonards On Sea lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold premises in St Leonards On Sea with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The lawyers that we work with procure 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 lawyer we work with provide it.
Charlie owned a 2 bedroom apartment in St Leonards On Sea on the market with a lease of fraction over 59 years unexpired. Charlie on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Last month we were approach by Mr and Mrs. S Petit , who purchased a recently refurbished flat in St Leonards On Sea in September 2006. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar homes in St Leonards On Sea with an extended lease were valued about £168,800. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 12 January 2081. Having 55 years remaining we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of legals.
Dr Kai Rogers moved into a studio apartment in St Leonards On Sea in March 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparable homes in St Leonards On Sea with an extended lease were valued around £235,200. The average ground rent payable was £45 invoiced quarterly. The lease terminated in 2092. Having 66 years unexpired we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.