Arundel leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Arundel residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Arundel you would be well advised to investigate if your lease has between seventy and ninety years left. There are good reasons why a Arundel flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Arundel with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Arundel can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Arundel lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley was the the leasehold owner of a 2 bedroom apartment in Arundel being marketed with a lease of a few days over 61 years left. Stanley informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mrs U Gray was assigned a lease of a garden apartment in Arundel in July 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Arundel with a long lease were valued around £264,000. The mid-range amount of ground rent was £60 collected yearly. The lease ran out in 2078. Given that there were 53 years remaining we approximated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including legals.
In 2013 we were phoned by Mr and Mrs. D Clarke who, having owned a one bedroom flat in Arundel in November 2010. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative properties in Arundel with a long lease were in the region of £220,400. The mid-range ground rent payable was £45 billed quarterly. The lease ended in 2089. Taking into account 64 years outstanding we calculated the premium to the landlord for the lease extension to be within £16,200 and £18,600 not including legals.