Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Angmering. Inevitably, the term of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Angmering have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Do give due deliberation before delaying your Angmering lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with procure Angmering 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.
In 2014 Tyler, started to get close to the eighty-year threshold with the lease on his garden flat in Angmering. Having bought his property 19 years ago, the length of the lease was of no significance. Thankfully, he recognised he would soon be paying way over the odds for a lease extension. Tyler arranged for a lease extension at the eleventh hour last July. Tyler and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had slid lower than 80 years, the figure would have become more exhorbitant by a minimum £1,025.
In 2013 we were contacted by Mr and Mrs. S Gómez who, having took over the lease of a one bedroom apartment in Angmering in October 1998. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Similar residencies in Angmering with a long lease were in the region of £205,000. The average ground rent payable was £50 billed quarterly. The lease terminated in 2105. Considering the 79 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
In 2009 we were e-mailed by Mr Freddie Torres who, having took over the lease of a purpose-built apartment in Angmering in January 2001. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable homes in Angmering with 100 year plus lease were valued around £275,000. The average amount of ground rent was £65 billed every twelve months. The lease finished in 2094. Given that there were 68 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.