When it comes to domestic leasehold property in Gosport, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Residents in Gosport with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has fewer than 80 years outstanding, under the current Act the landlord can calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Gosport leasehold, as your property will be more valuable and saleable in terms of lease length should you want 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.
During the course of the last few months Zachary, started to get near to the eighty-year mark with the lease on his one bedroom flat in Gosport. Having purchased his home two decades ago, the length of the lease was of little concern. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Zachary was able to extend his lease at the eleventh hour in May. Zachary and the landlord ultimately agreed on an amount of £5,500 . If the lease had slid to less than 80 years, the sum would have escalated by at least £1,075.
In 2012 we were e-mailed by Mrs Y Lee who, having acquired a studio flat in Gosport in January 2007. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Similar properties in Gosport with a long lease were in the region of £208,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease expiry date was in 2082. Taking into account 57 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.
Last Autumn we were contacted by Ms Daisy Ward , who completed a basement apartment in Gosport in March 2002. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical flats in Gosport with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected annually. The lease terminated in 2102. Given that there were 77 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.