Fratton and Portsea leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Fratton and Portsea will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 gives you better control over the value of your Fratton and Portsea leasehold, as your property will be more valuable and saleable 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.
14 months ago Ben, started to get near to the 80-year mark with the lease on his first floor apartment in Fratton and Portsea. Having purchased his home twenty years ago, the lease term was of little interest. Thankfully, it dawned on him that he would imminently be paying way over the odds for a lease extension. Ben arranged for a lease extension just under the wire last January. Ben and the freeholder in the end settled on the final figure of £6,000 . If the lease had slipped lower than 80 years, the premium would have become more exhorbitant by at least £1,125.
Mr and Mrs. V Ricardo purchased a ground floor apartment in Fratton and Portsea in March 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Fratton and Portsea with an extended lease were in the region of £173,800. The average amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 20 August 2080. Considering the 55 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.
Mr and Mrs. N Morris was assigned a lease of a one bedroom flat in Fratton and Portsea in August 2003. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable residencies in Fratton and Portsea with 100 year plus lease were valued about £235,200. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed on 28 November 2091. Taking into account 66 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.