Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Portslade. Clearly, the term of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Portslade have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give careful deliberation before putting off your Portslade lease extension. Putting off that expense now simply increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Portslade,the lease extension solicitors that we work with will always be happy 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.
Connor was the the leasehold owner of a high value flat in Portslade being sold with a lease of a few days over 59 years outstanding. Connor on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to invoke his statutory right. Connor procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Spring we were contacted by Mr and Mrs. V Hall , who was assigned a lease of a garden flat in Portslade in March 2007. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical premises in Portslade with an extended lease were valued about £200,000. The mid-range amount of ground rent was £50 collected yearly. The lease finished on 6 July 2103. Taking into account 77 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
In 2009 we were contacted by Ms Sophia Nelson who, having purchased a purpose-built flat in Portslade in March 2002. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative residencies in Portslade with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 collected monthly. The lease came to a finish on 1 May 2092. Having 66 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of professional charges.