The market value of a leasehold property in West Wittering is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded prior to the eighty year cut off point. Leasehold Reform legislation entitles West Wittering qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in West Wittering with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle West Wittering 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.
Trailing lengthy negotiations with the freeholder of her first floor flat in West Wittering, Freya commenced the lease extension process just as the lease was coming close to the crucial eighty-year mark. The legal work was concluded in April 2010. The freeholder’s fees were restricted to below 600 pounds.
Last Winter we were e-mailed by Mr and Mrs. C Rivera , who owned a studio apartment in West Wittering in April 2006. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in West Wittering with an extended lease were worth £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease expiry date was in 2105. Taking into account 79 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Last year we were e-mailed by Mr and Mrs. B Murphy , who completed a purpose-built flat in West Wittering in February 2001. The question was if we could approximate the premium would be to extend the lease by an additional years. Identical premises in West Wittering with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease ran out in 2094. Considering the 68 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.