Little Hampton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Little Hampton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Little Hampton you should see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Little Hampton flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Little Hampton with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Godiva Mortgages | 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. |
| 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. |
The conveyancers that we work with procure Little Hampton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Charlie, started to get close to the eighty-year mark with the lease on his ground floor apartment in Little Hampton. In buying his property 18 years ago, the length of the lease was of minimal interest. Fortunately, he recognised he would imminently be paying way over the odds for Extending the lease. Charlie extended the lease just ahead of time last September. Charlie and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If he had missed the deadline, the amount would have gone up by a minimum £1,000.
Last year we were called by Mr and Mrs. H Lambert , who bought a first floor apartment in Little Hampton in January 1998. The question was if we could approximate the premium could be to prolong the lease by ninety years. Comparative properties in Little Hampton with a long lease were valued around £275,000. The average amount of ground rent was £55 collected monthly. The lease ran out on 4 November 2103. Having 77 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.
Last Spring we were approach by Mr Kian Smith , who acquired a studio flat in Little Hampton in August 2006. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Comparable properties in Little Hampton with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected quarterly. The lease expired in 2083. Having 57 years unexpired we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.