With a long leasehold property in Portslade, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Leasehold owners in Portslade with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has under eighty years left, under the current Act the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Portslade can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Portslade lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Seth, started to get near to the 80-year threshold with the lease on his purpose- built flat in Portslade. Having bought his property two decades ago, the lease term was of no importance. Luckily, it dawned on him that he would soon be paying way over the odds for Extending the lease. Seth extended the lease just under the wire in August. Seth and the freeholder eventually agreed on sum of £5,500 . If the lease had dipped below eighty years, the sum would have increased by a minimum £1,125.
In 2012 we were approached by Mr and Mrs. Y Cooper who, having acquired a purpose-built flat in Portslade in January 2009. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable properties in Portslade with 100 year plus lease were worth £290,000. The average ground rent payable was £45 invoiced quarterly. The lease expired on 21 January 2099. Having 73 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Dr E Nguyen acquired a ground floor flat in Portslade in February 1997. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar flats in Portslade with an extended lease were in the region of £240,600. The average ground rent payable was £60 collected quarterly. The lease came to a finish on 28 August 2088. Taking into account 62 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.