It’s a harsh truth that a Gosport residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Gosport property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Gosport will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Gosport leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel owned a studio apartment in Gosport on the market with a lease of fraction over 72 years outstanding. Gabriel informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2012 we were e-mailed by Ms N James who, having owned a one bedroom apartment in Gosport in June 1997. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical residencies in Gosport with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease came to a finish on 8 May 2101. Considering the 76 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Dr Lauren Bell was assigned a lease of a recently refurbished apartment in Gosport in January 2004. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Gosport with 100 year plus lease were valued about £257,800. The average ground rent payable was £65 billed monthly. The lease finished in 2090. Having 65 years outstanding we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of costs.