Angmering leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Angmering will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent 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 |
|---|---|
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Angmering,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 Angmering valuers.
Mason was the the leasehold owner of a 2 bedroom apartment in Angmering on the market with a lease of a little over fifty eight years outstanding. Mason informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mrs C Jones completed a basement apartment in Angmering in February 2005. The question was if we could approximate the price would likely be for a ninety year lease extension. Similar flats in Angmering with a long lease were in the region of £200,000. The average ground rent payable was £50 billed per annum. The lease finished in 2103. Given that there were 77 years remaining we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2011 we were called by Dr B Lee who, having acquired a studio flat in Angmering in September 2009. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Angmering with a long lease were in the region of £265,200. The average ground rent payable was £65 collected per annum. The lease expiry date was in 2092. Having 66 years remaining we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus fees.