With a domestic leasehold property in Steyning, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension 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 when there are less than eighty years left. Residents in Steyning with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under eighty years left, under the current statute the landlord is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Steyning with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Steyning,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Steyning valuers.
Following protracted negotiations with the freeholder of her leasehold apartment in Steyning, Nicole initiated the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work was concluded in June 2010. The freeholder’s charges were kept to an absolute minimum.
Mr Leon Howard moved into a purpose-built flat in Steyning in April 2002. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Steyning with a long lease were worth £216,000. The average ground rent payable was £60 collected quarterly. The lease came to a finish on 18 August 2084. Taking into account 58 years unexpired we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.
Last February we were contacted by Mr and Mrs. R Gómez , who bought a first floor apartment in Steyning in February 2000. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical premises in Steyning with an extended lease were valued about £205,000. The average amount of ground rent was £50 invoiced annually. The lease terminated on 19 April 2105. Given that there were 79 years left we calculated the premium to the landlord for the lease extension to be between £7,600 and £8,800 not including professional charges.