Worthing leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Worthing enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Worthing you really ought to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Worthing,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Worthing valuers.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her ground floor flat in Worthing, Gemma commenced the lease extension process as the 80 year deadline was rapidly advancing. The legal work was concluded in August 2007. The landlord’s costs were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. I Wright who, having acquired a purpose-built flat in Worthing in March 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Worthing with a long lease were valued about £196,400. The average ground rent payable was £55 invoiced quarterly. The lease termination date was in 2079. Considering the 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £35,200 and £40,600 exclusive of legals.
In 2014 we were contacted by Mr and Mrs. S André who, having purchased a studio flat in Worthing in March 2010. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Similar homes in Worthing with an extended lease were valued around £295,000. The average amount of ground rent was £45 invoiced monthly. The lease lapsed in 2099. Having 74 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.