Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Lancing. Clearly, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Lancing have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Please give careful deliberation before delaying your Lancing lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Lancing can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Lancing lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Toby, started to get near to the 80-year mark with the lease on his purpose- built apartment in Lancing. In buying his home two decades ago, the length of the lease was of minimal relevance. by good luck, he recognised he needed to take action soon on Extending the lease. Toby was able to extend his lease just ahead of time in August. Toby and the freeholder via the management company eventually settled on a premium of £5,500 . If the lease had slipped to less than eighty years, the price would have gone up by at least £975.
Mr and Mrs. D Edwards moved into a ground floor flat in Lancing in August 2011. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable residencies in Lancing with 100 year plus lease were valued about £208,200. The average amount of ground rent was £65 collected annually. The lease finished in 2086. Having 61 years left we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.
Last year we were approach by Mr M Rose , who took over the lease of a purpose-built flat in Lancing in May 1997. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Similar homes in Lancing with a long lease were worth £260,000. The mid-range ground rent payable was £50 billed annually. The lease expired on 26 June 2097. Given that there were 72 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.