The value of Little Hampton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is below than eighty years
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Little Hampton can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 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.
Max owned a high value apartment in Little Hampton being sold with a lease of fraction over 72 years remaining. Max informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Max to invoke his statutory right. Max procured expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
In 2014 we were phoned by Ms V Parker who, having owned a one bedroom apartment in Little Hampton in November 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Little Hampton with an extended lease were in the region of £227,800. The mid-range ground rent payable was £45 billed every twelve months. The lease expiry date was in 2090. Taking into account 65 years remaining we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
Mr and Mrs. S Howard took over the lease of a studio apartment in Little Hampton in April 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparable properties in Little Hampton with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 collected yearly. The lease finished in 2101. Given that there were 76 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.