The market value of a leasehold property in Worthing is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be concluded in advance of the 80 year threshold. Current legislation enables Worthing qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Worthing with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Worthing valuers.
Trailing unsuccessful discussions with the landlord of her basement apartment in Worthing, Lily started the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction was finalised in July 2007. The freeholder’s fees were negotiated to slightly above 700 pounds.
In 2013 we were contacted by Dr Elizabeth Torres who, having owned a basement apartment in Worthing in September 2007. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Identical residencies in Worthing with a long lease were in the region of £248,000. The average ground rent payable was £65 billed per annum. The lease lapsed on 28 May 2088. Considering the 63 years unexpired we calculated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.
Mr and Mrs. G Lewis was assigned a lease of a studio apartment in Worthing in June 2010. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Similar premises in Worthing with 100 year plus lease were valued about £184,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded on 5 November 2078. Considering the 53 years remaining we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.