Portslade leases on residential properties are gradually diminishing in 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. It is the case that most Portslade tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Portslade you must see if your lease has between seventy and ninety years left. There are good reasons why a Portslade flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Portslade with over 100 years left 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 upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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 |
Retaining our service gives you increased control over the value of your Portslade leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Leon owned a 2 bedroom apartment in Portslade on the market with a lease of fraction over 59 years outstanding. Leon on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Leon to exercise his statutory right. Leon obtained expert legal guidance and secured satisfactory deal informally and sell the property.
Last Winter we were phoned by Dr T Cox , who acquired a ground floor flat in Portslade in April 2007. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative flats in Portslade with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease concluded on 4 July 2081. Having 56 years outstanding we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.
Mr L Thompson took over the lease of a ground floor flat in Portslade in August 2005. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Portslade with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ended in 2101. Having 76 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.