Portslade residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using 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.
After unsuccessful correspondence with the landlord of her leasehold flat in Portslade, Kirsty started the lease extension process as the 80 year deadline was fast nearing. The legal work was concluded in August 2014. The landlord’s charges were restricted to about 550 pounds.
Mr and Mrs. T Robinson completed a one bedroom flat in Portslade in July 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar properties in Portslade with a long lease were in the region of £189,000. The mid-range ground rent payable was £55 billed annually. The lease ended in 2079. Given that there were 53 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
Last Spring we were approach by Dr O Sánchez , who purchased a basement flat in Portslade in September 2006. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical residencies in Portslade with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected monthly. The lease end date was on 27 January 2099. Having 73 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.