Unfortunately that a Storrington residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Storrington property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Storrington will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Storrington with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 landlord in Storrington,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Storrington valuers.
Noah owned a conversion apartment in Storrington being marketed with a lease of fraction over sixty years remaining. Noah on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Noah to invoke his statutory right. Noah obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Last Christmas we were contacted by Mrs N Khan , who completed a first floor apartment in Storrington in September 2002. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Storrington with a long lease were worth £250,400. The mid-range amount of ground rent was £65 collected monthly. The lease lapsed on 3 October 2089. Given that there were 64 years unexpired we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus fees.
In 2009 we were called by Mr Ollie Clark who, having completed a studio apartment in Storrington in January 2007. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar homes in Storrington with a long lease were valued around £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed on 9 January 2079. Considering the 54 years left we approximated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of costs.