It’s an underpublicised certainty that a Arundel residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Arundel property market.Once your lease gets to 85ish years, you need to start thinking about 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 dips under 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Arundel will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Arundel,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Arundel valuers.
Trailing unsuccessful correspondence with the freeholder of her first floor flat in Arundel, Yasmin started the lease extension process as the eighty year deadline was quickly advancing. The lease extension completed in August 2005. The landlord’s charges were negotiated to slightly above four hundred pounds.
Last November we were e-mailed by Dr Alexander Gray , who bought a first floor apartment in Arundel in May 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Arundel with 100 year plus lease were worth £260,000. The average ground rent payable was £50 billed per annum. The lease ran out in 2097. Having 72 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2009 we were e-mailed by Mr V González who, having was assigned a lease of a recently refurbished flat in Arundel in August 2012. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar homes in Arundel with a long lease were worth £256,600. The mid-range ground rent payable was £60 billed quarterly. The lease elapsed in 2077. Considering the 52 years left we calculated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 not including fees.