Unfortunately that a Portslade residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Portslade property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term falls below eighty years, you will then be required to pay half of the property's 'marriage value' on top of 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 Most flat owners in Portslade will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Portslade with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Portslade,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Portslade valuers.
Toby was the the leasehold proprietor of a high value flat in Portslade being sold with a lease of fraction over fifty eight years remaining. Toby informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
Last Winter we were approach by Ms Lauren Girard , who was assigned a lease of a one bedroom flat in Portslade in July 2003. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative flats in Portslade with a long lease were worth £210,000. The mid-range ground rent payable was £50 billed annually. The lease ran out in 2106. Taking into account 80 years left we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Mr and Mrs. U Morris purchased a basement flat in Portslade in September 2001. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Portslade with 100 year plus lease were in the region of £275,000. The average ground rent payable was £45 invoiced every twelve months. The lease concluded on 21 May 2095. Given that there were 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.