The market value of Chichester leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is below than 80 years
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you enhanced control over the value of your Chichester leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her basement flat in Chichester, Ellie started the lease extension process just as the lease was approaching the crucial eighty-year mark. The transaction was concluded in May 2005. The freeholder’s charges were negotiated to a tad over 700 pounds.
Dr K Davis moved into a one bedroom flat in Chichester in January 1999. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical homes in Chichester with an extended lease were valued about £233,200. The mid-range ground rent payable was £60 collected quarterly. The lease came to a finish on 7 January 2086. Having 61 years remaining we approximated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 not including professional charges.
Last month we were contacted by Mr and Mrs. I Roberts , who completed a purpose-built apartment in Chichester in October 2009. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative residencies in Chichester with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish on 12 March 2075. Having 50 years left we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including costs.