With a domestic leasehold premises in Shoreham By Sea, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Residents in Shoreham By Sea with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has below eighty years left, under the current legislation the landlord can calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Shoreham By Sea with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Shoreham By Sea can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Shoreham By Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Muhammad was the the leasehold owner of a 2 bedroom apartment in Shoreham By Sea on the market with a lease of a few days over fifty eight years unexpired. Muhammad on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. H Watson took over the lease of a first floor flat in Shoreham By Sea in March 2010. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparable residencies in Shoreham By Sea with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed yearly. The lease lapsed on 19 October 2099. Taking into account 73 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Dr Jamie François took over the lease of a first floor flat in Shoreham By Sea in February 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparable homes in Shoreham By Sea with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired in 2079. Given that there were 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 plus professional charges.