Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Portslade. Inevitably, the term of lease remaining reduces over time. This is often ignored and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Portslade have the right to extend the lease for an additional ninety years in accordance with legislation. Please give careful attention before delaying your Portslade lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Portslade,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Portslade valuers.
Half a year ago Tommy, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Portslade. Having purchased his property 18 years ago, the lease term was of little interest. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Tommy was able to extend his lease just under the wire in June. Tommy and the freeholder eventually settled on an amount of £5,500 . If the lease had descended below 80 years, the figure would have increased by at least £1,025.
In 2014 we were contacted by Mr U Gómez who, having completed a one bedroom flat in Portslade in October 2008. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Similar flats in Portslade with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 collected per annum. The lease came to a finish in 2081. Considering the 57 years outstanding we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.
In 2012 we were phoned by Mrs Phoebe Wilson who, having owned a studio apartment in Portslade in April 2009. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative premises in Portslade with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out on 8 July 2101. Considering the 77 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.