It’s a harsh truth that a Worthing residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Worthing property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Worthing will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Worthing with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Worthing,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 Worthing valuers.
Luke was the the leasehold owner of a conversion apartment in Worthing on the market with a lease of just over 59 years unexpired. Luke informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Luke to invoke his statutory right. Luke procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
Dr Caitlin Turner took over the lease of a ground floor apartment in Worthing in May 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar premises in Worthing with a long lease were worth £179,200. The mid-range amount of ground rent was £55 collected yearly. The lease terminated on 4 May 2076. Given that there were 51 years left we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
Last Spring we were contacted by Mrs F Rivera , who purchased a one bedroom flat in Worthing in November 2012. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable properties in Worthing with a long lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired in 2097. Given that there were 72 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.