Arundel leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Arundel will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Regardless of whether you are a tenant or a landlord in Arundel,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Arundel valuers.
Adam owned a 2 bedroom apartment in Arundel on the market with a lease of a little over fifty eight years unexpired. Adam informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Adam to exercise his statutory right. Adam procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Autumn we were contacted by Mr and Mrs. E Lewis , who purchased a garden apartment in Arundel in August 2010. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Similar properties in Arundel with an extended lease were valued about £210,600. The average ground rent payable was £45 billed quarterly. The lease came to a finish on 28 August 2088. Considering the 62 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including costs.
Dr E Cox acquired a recently refurbished flat in Arundel in August 2006. The question was if we could approximate the premium would be to prolong the lease by an additional years. Comparative flats in Arundel with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated in 2099. Considering the 73 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.