On the balance of probabilities if you own a flat in Lancing you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Lancing leasehold, as your property will be more valuable and saleable in respect of lease length should you want 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.
David owned a high value flat in Lancing being sold with a lease of fraction over fifty eight years left. David informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were David to exercise his statutory right. David procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Last year we were called by Mr and Mrs. J Edwards , who completed a recently refurbished flat in Lancing in August 2006. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative homes in Lancing with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 billed annually. The lease ended on 12 March 2106. Taking into account 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.
In 2012 we were phoned by Mrs A Vincent who, having completed a basement apartment in Lancing in August 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Lancing with 100 year plus lease were worth £200,800. The average ground rent payable was £65 billed every twelve months. The lease ended in 2086. Having 60 years outstanding we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus fees.