With a long leasehold property in Pagham, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years remaining. Leasehold owners in Pagham with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the relevant statute the landlord is entitled to calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 conveyancing solicitors that we work with procure Pagham 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.
In recent months Alfie, came very close to the 80-year mark with the lease on his garden apartment in Pagham. Having purchased his property two decades ago, the unexpired term was of minimal significance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Alfie arranged for a lease extension just under the wire in April. Alfie and the freeholder ultimately settled on an amount of £5,000 . If the lease had descended below eighty years, the sum would have escalated by at least £1,150.
In 2010 we were called by Mr and Mrs. N Nguyen who, having owned a first floor flat in Pagham in August 2002. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar flats in Pagham with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected monthly. The lease ended in 2089. Considering the 63 years outstanding we approximated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 not including costs.
Last year we were phoned by Dr Hunter Norbert , who was assigned a lease of a basement flat in Pagham in November 1998. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparative premises in Pagham with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish in 2100. Having 74 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.