It’s a harsh certainty that a Little Hampton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Little Hampton property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. Most leasehold owners in Little Hampton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Little Hampton with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Luke was the the leasehold owner of a 2 bedroom apartment in Little Hampton on the market with a lease of fraction over fifty eight years remaining. Luke on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Luke to invoke his statutory right. Luke procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.
Dr Ben Brooks acquired a ground floor flat in Little Hampton in March 1998. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar properties in Little Hampton with a long lease were worth £245,000. The average amount of ground rent was £50 billed quarterly. The lease ran out in 2093. Taking into account 68 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Mrs I Ward owned a one bedroom apartment in Little Hampton in April 2010. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical properties in Little Hampton with an extended lease were valued about £285,000. The average amount of ground rent was £55 billed annually. The lease finished on 4 August 2104. Taking into account 79 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.