Unfortunately that a Portslade residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Portslade property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term slips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Portslade will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Portslade lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to protracted correspondence with the freeholder of her ground floor flat in Portslade, Imogen initiated the lease extension process just as the lease was approaching the crucial 80-year threshold. The transaction was concluded in October 2009. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. L Cooper moved into a garden flat in Portslade in March 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Portslade with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 billed quarterly. The lease expired on 3 April 2103. Having 78 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
In 2009 we were phoned by Mrs J Ward who, having took over the lease of a first floor apartment in Portslade in January 2006. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparable premises in Portslade with a long lease were in the region of £267,600. The average amount of ground rent was £65 billed yearly. The lease finished in 2092. Considering the 67 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus legals.