Storrington residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold residencies in Storrington with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
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.
Subsequent to lengthy negotiations with the freeholder of her two bedroom apartment in Storrington, Jordan commenced the lease extension process as the eighty year mark was quickly approaching. The legal work was concluded in February 2014. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Mr and Mrs. U White who, having acquired a basement apartment in Storrington in February 2003. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical residencies in Storrington with 100 year plus lease were valued about £235,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease expiry date was on 8 January 2087. Having 62 years left we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus expenses.
Last Summer we were phoned by Dr O Wilson , who took over the lease of a studio apartment in Storrington in July 2008. We are asked if we could estimate the price would be for a ninety year lease extension. Identical properties in Storrington with an extended lease were in the region of £174,200. The average ground rent payable was £55 collected every twelve months. The lease ran out in 2076. Considering the 51 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.