The closer a domestic lease in Arundel gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 99 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner than later. Most flat owners in Arundel will qualify for this right; that being said a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Arundel leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the freeholder of her two bedroom apartment in Arundel, Rebecca started the lease extension process as the eighty year mark was quickly approaching. The legal work completed in January 2012. The landlord’s charges were restricted to about 500 pounds.
Mr and Mrs. S Girard acquired a first floor apartment in Arundel in September 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical flats in Arundel with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 billed per annum. The lease ran out in 2086. Considering the 60 years outstanding we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus professional charges.
Dr N Stewart completed a recently refurbished apartment in Arundel in March 1996. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar properties in Arundel with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease elapsed on 15 February 2097. Given that there were 71 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.