Havant leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Havant will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some situations you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Havant with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you better control over the value of your Havant leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Theo, started to get close to the eighty-year mark with the lease on his leasehold flat in Havant. Having bought his flat 19 years ago, the lease term was of little significance. Fortunately, it dawned on him that he would soon be paying way over the odds for a lease extension. Theo arranged for a lease extension just in the nick of time last June. Theo and the freeholder eventually settled on the final figure of £5,500 . If he not met the deadline, the figure would have increased by at least £875.
Dr V Leroy purchased a first floor apartment in Havant in September 2010. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative homes in Havant with 100 year plus lease were valued about £227,800. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out on 20 March 2090. Considering the 65 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Last Summer we were e-mailed by Dr Aiden Ali , who moved into a studio apartment in Havant in February 2009. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative premises in Havant with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 billed monthly. The lease ran out on 23 April 2101. Having 76 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.