Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Shoreham By Sea. Clearly, the period of lease left reduces as time goes by. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Shoreham By Sea have the right to extend the lease for a further 90 years under statute. Please give due deliberation before delaying your Shoreham By Sea lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Shoreham By Sea,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shoreham By Sea valuers.
In 2014 Jude, came very close to the 80-year mark with the lease on his purpose- built apartment in Shoreham By Sea. In buying his home 19 years previously, the lease term was of little interest. Thankfully, he recognised he needed to take action soon on Extending the lease. Jude extended the lease just in the nick of time last May. Jude and the landlord who owned the flat above eventually settled on sum of £6,000 . If he had missed the deadline, the sum would have increased by a minimum £900.
Last Autumn we were contacted by Dr F González , who bought a one bedroom apartment in Shoreham By Sea in June 2010. The dilemma was if we could approximate the price would be for a 90 year lease extension. Identical premises in Shoreham By Sea with a long lease were worth £176,200. The mid-range ground rent payable was £65 billed every twelve months. The lease termination date was in 2082. Considering the 56 years as a residual term we approximated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of costs.
Last Summer we were approach by Mr and Mrs. P Bonnet , who completed a ground floor apartment in Shoreham By Sea in April 2010. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative flats in Shoreham By Sea with 100 year plus lease were worth £237,600. The average ground rent payable was £45 invoiced per annum. The lease terminated on 20 May 2093. Considering the 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including fees.