It’s a harsh certainty that a Lancing residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Lancing property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Lancing will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Lancing can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
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.
In the wake of 6 months of protracted negotiations with the freeholder of her one bedroom apartment in Lancing, Isabelle started the lease extension process just as her lease was approaching the crucial eighty-year deadline. The lease extension completed in October 2013. The freeholder’s costs were restricted to a tad over four hundred GBP.
Dr E Martin owned a one bedroom apartment in Lancing in July 2012. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable flats in Lancing with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected monthly. The lease elapsed in 2098. Having 73 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last Spring we were called by Mrs T Garcia , who completed a first floor apartment in Lancing in November 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Lancing with an extended lease were in the region of £264,000. The mid-range ground rent payable was £60 invoiced annually. The lease expiry date was in 2078. Considering the 53 years left we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus legals.