Unfortunately that a Gosport residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Gosport property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Gosport will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Gosport can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
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 Gosport lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Reuben, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Gosport. In buying his home 19 years ago, the length of the lease was of little bearing. Luckily, he became aware that he would imminently be paying an escalated premium for a lease extension. Reuben arranged for a lease extension just in the nick of time last July. Reuben and the freeholder via the managing agents subsequently settled on sum of £5,500 . If he had missed the deadline, the premium would have gone up by at least £950.
Dr C Cook owned a recently refurbished apartment in Gosport in March 2000. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical flats in Gosport with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed monthly. The lease termination date was on 10 July 2095. Taking into account 69 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
In 2010 we were approached by Mr Jackson Smith who, having took over the lease of a studio apartment in Gosport in April 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Gosport with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 collected annually. The lease ended in 2084. Taking into account 58 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.