Unfortunately that a Eastney and Southsea residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Eastney and Southsea property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term drops under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Eastney and Southsea will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Eastney and Southsea with over 100 years remaining on the lease are sometimes regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Retaining our service gives you better control over the value of your Eastney and Southsea leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Muhammad, came critically close to the 80-year threshold with the lease on his purpose- built apartment in Eastney and Southsea. Having bought his property twenty years ago, the length of the lease was of no relevance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Muhammad was able to extend his lease just in the nick of time last March. Muhammad and the landlord who owned the flat above eventually agreed on sum of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,100.
Mr T Rodríguez acquired a purpose-built apartment in Eastney and Southsea in March 2005. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Similar homes in Eastney and Southsea with an extended lease were worth £174,200. The average ground rent payable was £55 invoiced monthly. The lease elapsed in 2077. Considering the 51 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
Last Spring we were contacted by Mr and Mrs. M Edwards , who moved into a one bedroom flat in Eastney and Southsea in September 1997. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Similar flats in Eastney and Southsea with a long lease were worth £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated on 2 July 2097. Taking into account 71 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.