Unfortunately that a Worthing residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Worthing property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. Most leasehold owners in Worthing will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Worthing with more than one hundred years unexpired on the lease are sometimes referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you enhanced control over the value of your Worthing leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted correspondence with the freeholder of her two bedroom flat in Worthing, Catherine started the lease extension process as the 80 year threshold was fast nearing. The transaction was concluded in August 2012. The landlord’s fees were kept to an absolute minimum.
In 2009 we were approached by Mr L García who, having bought a first floor flat in Worthing in June 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Worthing with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded on 23 July 2093. Considering the 67 years unexpired we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of expenses.
In 2014 we were e-mailed by Dr James Bailey who, having owned a recently refurbished flat in Worthing in May 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Worthing with a long lease were valued about £201,200. The mid-range ground rent payable was £55 billed yearly. The lease concluded on 6 July 2082. Taking into account 56 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.