With a residential leasehold property in Worthing, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years left. Residents in Worthing with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has less than 80 years outstanding, under the relevant Act the landlord can calculate and demand a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Worthing with in excess of one hundred years remaining on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| 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. |
Lease extensions in Worthing can be a difficult process. We recommend you get professional help from a lawyer 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 Worthing lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Evan, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Worthing. In buying his home twenty years ago, the length of the lease was of no bearing. As luck would have it, he recognised he needed to take action soon on a lease extension. Evan extended the lease just ahead of time in September. Evan and the landlord eventually settled on sum of £5,000 . If the lease had dipped lower than eighty years, the figure would have escalated by at least £1,100.
In 2014 we were contacted by Mr and Mrs. L Gray who, having completed a garden flat in Worthing in April 1997. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Similar residencies in Worthing with an extended lease were in the region of £208,600. The average ground rent payable was £60 invoiced yearly. The lease ended on 16 October 2083. Given that there were 57 years remaining we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus fees.
In 2011 we were e-mailed by Mr and Mrs. P Taylor who, having bought a first floor flat in Worthing in August 2005. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Comparative premises in Worthing with an extended lease were valued around £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expired on 9 July 2103. Given that there were 77 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.