There is no doubt about it a leasehold property in Shoreham By Sea is a wasting asset as a result of the shortening lease. Where the lease has, in excess of one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Shoreham By Sea will qualify for this right; nevertheless a conveyancer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Shoreham By Sea with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | 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 also be not less than 75 years at the outset of the mortgage. |
Retaining our service will provide you increased control over the value of your Shoreham By Sea leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Charlie, started to get close to the 80-year threshold with the lease on his basement apartment in Shoreham By Sea. Having purchased his property two decades ago, the lease term was of no interest. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Charlie extended the lease at the eleventh hour in August. Charlie and the landlord subsequently agreed on sum of £6,000 . If he not met the deadline, the figure would have escalated by a minimum £1,075.
Mr and Mrs. L Morel completed a first floor flat in Shoreham By Sea in February 2000. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Shoreham By Sea with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded on 19 June 2103. Taking into account 78 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
Dr C Smith acquired a one bedroom flat in Shoreham By Sea in March 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Shoreham By Sea with a long lease were valued around £186,000. The average amount of ground rent was £65 invoiced yearly. The lease end date was on 3 September 2083. Given that there were 58 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 not including expenses.