For anyone whose Eastney and Southsea home is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold properties in Eastney and Southsea with more than 100 years outstanding 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Eastney and Southsea can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
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 Eastney and Southsea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley was the the leasehold owner of a 2 bedroom flat in Eastney and Southsea being sold with a lease of just over 59 years unexpired. Stanley informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mr and Mrs. B López moved into a one bedroom flat in Eastney and Southsea in May 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Eastney and Southsea with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 collected yearly. The lease finished in 2084. Considering the 58 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.
Mr and Mrs. J Hill purchased a one bedroom apartment in Eastney and Southsea in November 2001. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative properties in Eastney and Southsea with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 collected every twelve months. The lease expired on 3 April 2104. Taking into account 78 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 plus fees.