It’s an underpublicised truth that a Portslade residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Portslade property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Portslade will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety 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. |
| Lloyds TSB Scotland | 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. |
| 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. |
Lease extensions in Portslade can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in this area.
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 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.
Off the back of protracted discussions with the freeholder of her basement apartment in Portslade, Isabelle commenced the lease extension process as the 80 year threshold was quickly advancing. The lease extension completed in June 2015. The landlord’s fees were negotiated to less than 500 GBP.
In 2011 we were approached by Dr A Lefèvre who, having completed a basement flat in Portslade in April 1997. We are asked if we could estimate the premium would be to extend the lease by 90 years. Identical flats in Portslade with a long lease were worth £295,000. The average ground rent payable was £45 billed monthly. The lease terminated in 2099. Taking into account 74 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Mr U Dupont owned a ground floor apartment in Portslade in September 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Portslade with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease concluded in 2088. Considering the 63 years remaining we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus fees.