Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Chichester. Clearly, the length of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Chichester have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. You should give careful deliberation before delaying your Chichester lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 landlord in Chichester,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chichester valuers.
Elijah owned a studio flat in Chichester on the market with a lease of a few days over 59 years outstanding. Elijah on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah procured expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2012 we were contacted by Mr and Mrs. H Jones who, having was assigned a lease of a ground floor apartment in Chichester in March 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative properties in Chichester with an extended lease were valued around £290,000. The average amount of ground rent was £45 invoiced annually. The lease elapsed on 21 March 2098. Having 73 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
In 2014 we were phoned by Mr M Hall who, having moved into a one bedroom apartment in Chichester in August 2007. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Chichester with a long lease were valued about £240,600. The mid-range ground rent payable was £60 billed monthly. The lease ran out on 15 March 2087. Taking into account 62 years outstanding we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of expenses.