The value of Rustington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than 80 years
Leasehold properties in Rustington with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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.
During the course of the last few months Joshua, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Rustington. In buying his home 19 years ago, the length of the lease was of little importance. Fortunately, he realised he needed to take steps soon on a lease extension. Joshua was able to extend his lease at the eleventh hour last May. Joshua and the landlord who owned the flat above subsequently settled on sum of £6,000 . If he had missed the deadline, the price would have gone up by at least £975.
Mr and Mrs. T Evans bought a garden apartment in Rustington in July 1995. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Rustington with 100 year plus lease were valued around £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease termination date was in 2088. Taking into account 63 years outstanding we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of professional charges.
In 2014 we were phoned by Ms N Martinez who, having took over the lease of a one bedroom flat in Rustington in March 2000. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Rustington with a long lease were worth £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded on 16 September 2099. Considering the 74 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.