Unfortunately that a Arundel residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Arundel property market.Where your lease has approximately 90 years left, you should 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 falls lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in Arundel will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Arundel with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Arundel,the lease extension solicitors 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 Arundel valuers.
Zachary owned a studio flat in Arundel on the market with a lease of fraction over sixty years remaining. Zachary on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to invoke his statutory right. Zachary obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
Mr and Mrs. M André was assigned a lease of a first floor apartment in Arundel in October 2000. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical properties in Arundel with a long lease were in the region of £275,000. The average ground rent payable was £55 invoiced yearly. The lease finished on 11 March 2102. Considering the 77 years left we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
Last Winter we were phoned by Ms Freya Wood , who was assigned a lease of a basement apartment in Arundel in May 2006. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical premises in Arundel with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 collected yearly. The lease ran out on 8 October 2082. Considering the 57 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.