Steyning leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Steyning enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Steyning you really ought to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Steyning leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Steyning can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in lease extensions.
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 Steyning lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the landlord of her purpose-built flat in Steyning, Poppy started the lease extension process just as the lease was approaching the all-important eighty-year mark. The lease extension was finalised in March 2006. The landlord’s costs were restricted to approximately 450 GBP.
In 2012 we were phoned by Ms W Girard who, having took over the lease of a studio flat in Steyning in March 2002. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative homes in Steyning with 100 year plus lease were valued about £189,000. The average amount of ground rent was £55 billed monthly. The lease concluded on 3 July 2078. Taking into account 53 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
Ms Isobel Rivera moved into a garden apartment in Steyning in June 2006. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable properties in Steyning with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease concluded on 18 June 2098. Given that there were 73 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.