The only way is down when it comes to Littlehampton lease terms. Littlehampton leaseholds that have a lease term lower than eighty years will drop in value even faster, and the cost to extend your lease will rise.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Littlehampton 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.
Noah was the the leasehold proprietor of a high value apartment in Littlehampton being sold with a lease of a few days over fifty eight years unexpired. Noah informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2014 we were e-mailed by Dr P Harris who, having took over the lease of a garden flat in Littlehampton in May 2000. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparable properties in Littlehampton with an extended lease were in the region of £216,000. The average ground rent payable was £60 invoiced annually. The lease ended on 12 March 2084. Considering the 58 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
In 2014 we were e-mailed by Mrs Mollie Michel who, having completed a recently refurbished apartment in Littlehampton in May 1998. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparative properties in Littlehampton with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease came to a finish in 2104. Having 78 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.