The market value of Havant leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the unexpired lease term is below than eighty years
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Havant can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 procuring Havant lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the freeholder of her purpose-built flat in Havant, Lauren commenced the lease extension process as the 80 year deadline was fast advancing. The lease extension completed in February 2005. The freeholder’s costs were restricted to below 550 pounds.
In 2010 we were called by Mrs Catherine Cox who, having completed a ground floor flat in Havant in May 2005. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Similar flats in Havant with a long lease were valued about £191,000. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed on 5 March 2083. Having 58 years remaining we estimated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of fees.
Mr and Mrs. L Norbert completed a one bedroom flat in Havant in February 2005. The question was if we could estimate the price could be to prolong the lease by an additional years. Similar homes in Havant with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 13 January 2094. Taking into account 69 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.