When it comes to domestic leasehold property in Fratton and Portsea, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years remaining. Residents in Fratton and Portsea with a lease nearing 81 years remaining should seriously consider extending it without delay. Once the lease term has below eighty years outstanding, under the current Act the landlord can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Fratton and Portsea with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Fratton and Portsea,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fratton and Portsea valuers.
Jayden was the the leasehold owner of a studio flat in Fratton and Portsea being marketed with a lease of fraction over 61 years remaining. Jayden on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Jayden to exercise his statutory right. Jayden obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2013 we were approached by Dr F Hill who, having took over the lease of a studio apartment in Fratton and Portsea in November 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative residencies in Fratton and Portsea with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease ended in 2075. Considering the 50 years remaining we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus legals.
In 2013 we were phoned by Mr and Mrs. H Jackson who, having purchased a first floor flat in Fratton and Portsea in October 2009. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Fratton and Portsea with 100 year plus lease were in the region of £208,200. The average ground rent payable was £65 invoiced every twelve months. The lease concluded on 28 April 2086. Taking into account 61 years remaining we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus expenses.