The re-sale value of a leasehold property in Eastney and Southsea is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded prior to the 80 year cut off point. Leasehold Reform legislation entitles Eastney and Southsea qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Eastney and Southsea with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | 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. |
Using our service will provide you enhanced control over the value of your Eastney and Southsea leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago David, came perilously near to the eighty-year mark with the lease on his ground floor flat in Eastney and Southsea. In buying his home two decades ago, the lease term was of minimal relevance. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. David was able to extend his lease just under the wire last May. David and the freeholder via the management company eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have escalated by at least £1,025.
In 2013 we were phoned by Mr N Walker who, having bought a garden flat in Eastney and Southsea in October 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical premises in Eastney and Southsea with an extended lease were in the region of £205,000. The average ground rent payable was £50 invoiced annually. The lease ended on 26 May 2104. Having 79 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
In 2012 we were phoned by Dr K Bertrand who, having purchased a basement flat in Eastney and Southsea in August 1995. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar properties in Eastney and Southsea with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £65 billed monthly. The lease lapsed in 2093. Having 68 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.