There is no doubt about it a leasehold flat or house in Littlehampton is a wasting asset as a result of the shortening lease. Where the lease has, over one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Littlehampton will meet the qualifying criteria; that being said a conveyancer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Littlehampton 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 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 lawyer we work with provide it.
Two years ago David, started to get close to the 80-year mark with the lease on his first floor flat in Littlehampton. Having bought his home twenty years previously, the unexpired term was of no importance. by good luck, he recognised he needed to take steps soon on Extending the lease. David extended the lease just in the nick of time in May. David and the landlord in the end agreed on a premium of £6,000 . If the lease had fallen lower than 80 years, the figure would have increased by at least £1,125.
Ms Danielle Hill was assigned a lease of a first floor flat in Littlehampton in March 2000. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparative properties in Littlehampton with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish in 2097. Given that there were 72 years left we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including professional charges.
In 2010 we were approached by Dr Georgia Bernard who, having moved into a studio flat in Littlehampton in June 2006. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical homes in Littlehampton with a long lease were worth £233,200. The average ground rent payable was £60 collected yearly. The lease concluded in 2086. Taking into account 61 years left we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including professional charges.