Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Billingshurst. Inevitably, the period of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Qualifying leaseholders in Billingshurst have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. You should give due attention before delaying your Billingshurst lease extension. Holding off the cost now only increases the price you will eventually have to pay for a lease extension
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Billingshurst,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 in-depth market knowledge and the close ties they enjoy with Billingshurst valuers.
Riley was the the leasehold proprietor of a conversion flat in Billingshurst being sold with a lease of a few days over 72 years outstanding. Riley informally contacted his landlord a well known London-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 on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Riley to exercise his statutory right. Riley procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Last Christmas we were phoned by Dr Leon López , who completed a ground floor apartment in Billingshurst in May 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Billingshurst with 100 year plus lease were valued about £171,800. The mid-range amount of ground rent was £55 billed quarterly. The lease finished in 2076. Given that there were 50 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 not including legals.
In 2014 we were e-mailed by Mr and Mrs. U Reed who, having moved into a one bedroom flat in Billingshurst in September 1995. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparable residencies in Billingshurst with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 billed annually. The lease elapsed on 26 June 2096. Considering the 70 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.