The value of Chichester leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is below than 80 years
Leasehold properties in Chichester with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Chichester,the lease extension lawyers 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 Chichester valuers.
During the course of the last few months Aaron, started to get close to the 80-year mark with the lease on his garden apartment in Chichester. Having purchased his flat two decades ago, the lease term was of little importance. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Aaron extended the lease just under the wire last July. Aaron and the freeholder in the end settled on an amount of £6,000 . If the lease had dropped to less than eighty years, the sum would have escalated by a minimum £1,125.
Last month we were approach by Dr Jack Nelson , who owned a garden flat in Chichester in October 2005. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical homes in Chichester with a long lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced yearly. The lease lapsed on 24 November 2079. Considering the 54 years outstanding we approximated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including legals.
Dr Niamh André moved into a one bedroom flat in Chichester in September 2004. The question was if we could approximate the price would be for a ninety year lease extension. Comparable residencies in Chichester with a long lease were in the region of £295,000. The average ground rent payable was £45 billed quarterly. The lease concluded on 20 August 2099. Considering the 74 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.