It’s a harsh truth that a Rustington residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Rustington property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. Most leasehold owners in Rustington will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancers 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 conveyancing solicitor we work with provide it.
Trailing protracted correspondence with the freeholder of her studio flat in Rustington, Zoe commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction was concluded in September 2010. The landlord’s fees were kept to an absolute minimum.
Dr M Harris owned a newly refurbished flat in Rustington in August 2005. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Rustington with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease ended in 2103. Taking into account 77 years as a residual term we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Ms U Wright moved into a studio apartment in Rustington in April 2009. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable properties in Rustington with a long lease were worth £183,600. The mid-range amount of ground rent was £65 collected yearly. The lease ended on 26 October 2083. Taking into account 57 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.