As the the remaining lease term of a Fratton and Portsea residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 100 years remaining then this decrease may be negligible however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Fratton and Portsea will qualify for this right; nevertheless a lawyer should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
| 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. |
The lawyers that we work with undertake Fratton and Portsea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In recent months Omar, came very near to the eighty-year mark with the lease on his garden apartment in Fratton and Portsea. In buying his home 18 years ago, the unexpired term was of minimal interest. Thankfully, he noticed he needed to take steps soon on a lease extension. Omar arranged for a lease extension at the eleventh hour last September. Omar and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If the lease had descended lower than eighty years, the amount would have escalated by at least £1,125.
Last Christmas we were phoned by Mr and Mrs. L Bernard , who purchased a basement flat in Fratton and Portsea in March 2012. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable properties in Fratton and Portsea with 100 year plus lease were worth £183,600. The average ground rent payable was £65 billed yearly. The lease came to a finish on 11 November 2083. Given that there were 57 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.
Last year we were contacted by Mr Ollie Laurent , who owned a one bedroom apartment in Fratton and Portsea in February 1996. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable homes in Fratton and Portsea with a long lease were worth £245,000. The average amount of ground rent was £50 collected monthly. The lease expiry date was in 2094. Considering the 68 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.