Storrington residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
Leasehold residencies in Storrington with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancers that we work with undertake Storrington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Eliot was the the leasehold proprietor of a studio flat in Storrington on the market with a lease of a few days over 61 years unexpired. Eliot informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Mr and Mrs. A Ramírez purchased a purpose-built flat in Storrington in June 2004. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Storrington with an extended lease were in the region of £285,000. The average ground rent payable was £45 invoiced per annum. The lease expired on 19 July 2098. Given that there were 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
In 2014 we were called by Ms V Patel who, having purchased a first floor apartment in Storrington in September 1996. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Identical premises in Storrington with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 billed quarterly. The lease ended in 2087. Taking into account 61 years left we estimated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including costs.