Portslade leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Portslade enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Portslade you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, 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. |
| Godiva Mortgages | 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. |
| 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 |
Lease extensions in Portslade can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Portslade lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year John, came critically near to the 80-year threshold with the lease on his garden apartment in Portslade. Having bought his flat 19 years ago, the length of the lease was of little significance. Fortunately, he noticed he needed to take action soon on a lease extension. John extended the lease at the eleventh hour last September. John and the landlord in the end settled on a premium of £6,000 . If he had missed the deadline, the sum would have gone up by at least £850.
In 2014 we were approached by Mr and Mrs. E Lefèvre who, having was assigned a lease of a ground floor flat in Portslade in April 2001. We are asked if we could approximate the premium could be to extend the lease by an additional years. Similar premises in Portslade with a long lease were worth £295,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded on 28 March 2100. Considering the 75 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mrs N Rose owned a purpose-built apartment in Portslade in January 2007. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Portslade with an extended lease were valued around £250,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease came to a finish on 2 February 2089. Given that there were 64 years remaining we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including costs.