Portslade leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Flat owners in Portslade will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Portslade with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Portslade,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Portslade valuers.
Noah owned a studio apartment in Portslade being marketed with a lease of fraction over 61 years left. Noah on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mrs D Scott purchased a first floor flat in Portslade in February 2001. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable properties in Portslade with an extended lease were valued around £174,200. The mid-range ground rent payable was £55 billed yearly. The lease concluded on 27 February 2077. Having 51 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.
In 2011 we were approached by Dr Elijah Kelly who, having was assigned a lease of a ground floor apartment in Portslade in July 1996. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Portslade with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed on 10 August 2097. Given that there were 71 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.