With a long leasehold premises in Rustington, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Rustington with a lease drawing near to 81 years left should seriously think of extending it sooner than later. When a lease has less than eighty years remaining, under the relevant statute the landlord is entitled to calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Rustington with in excess of 100 years remaining 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Rustington 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.
In 2014 Alfie, started to get near to the eighty-year mark with the lease on his garden apartment in Rustington. Having purchased his home two decades ago, the unexpired term was of no importance. Fortunately, he recognised he would imminently be paying way over the odds for a lease extension. Alfie was able to extend his lease just in the nick of time in March. Alfie and the freeholder subsequently settled on the final figure of £6,000 . If he had missed the deadline, the amount would have increased by at least £900.
Ms Holly Young was assigned a lease of a purpose-built flat in Rustington in October 2002. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Identical homes in Rustington with an extended lease were valued around £254,200. The average ground rent payable was £60 collected monthly. The lease ran out on 11 February 2077. Given that there were 51 years remaining we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including legals.
Last year we were called by Ms J Kelly , who purchased a purpose-built apartment in Rustington in May 2002. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable homes in Rustington with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 collected yearly. The lease terminated on 20 January 2088. Taking into account 62 years remaining we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of legals.