The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Little Hampton may extend the lease for an additional 90 years in accordance with statute. Please think carefully before delaying your Little Hampton lease extension. Postponing the costs today simply escalates the amount you will eventually be required to pay for a lease extension.
Leasehold properties in Little Hampton with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Little Hampton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 in-depth market knowledge dealing with Little Hampton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the landlord of her basement apartment in Little Hampton, Louise initiated the lease extension process as the 80 year deadline was swiftly nearing. The transaction was finalised in October 2015. The landlord’s fees were kept to an absolute minimum.
Last month we were phoned by Dr Caitlin Thompson , who moved into a studio flat in Little Hampton in May 1999. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Similar homes in Little Hampton with an extended lease were worth £218,000. The average amount of ground rent was £45 collected per annum. The lease concluded in 2089. Taking into account 63 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including costs.
In 2013 we were contacted by Ms Mia Rose who, having owned a basement apartment in Little Hampton in November 1998. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Little Hampton with an extended lease were in the region of £265,000. The mid-range ground rent payable was £55 collected per annum. The lease lapsed in 2100. Given that there were 74 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.