It’s a harsh truth that a Havant residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Havant property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term slips under eighty years, you will then be required to pay half 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 Havant will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold properties in Havant with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Halifax | |
| National Westminster Bank | |
| Santander | |
| Yorkshire Building Society |
Using our service will provide you better control over the value of your Havant leasehold, as your property will be more valuable and saleable in respect of 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.
Half a year ago Nathan, started to get near to the eighty-year threshold with the lease on his basement apartment in Havant. In buying his flat two decades ago, the length of the lease was of minimal bearing. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Nathan arranged for a lease extension just under the wire in June. Nathan and the landlord eventually settled on an amount of £5,000 . If the lease had fallen below 80 years, the premium would have become more exhorbitant by at least £850.
In 2010 we were approached by Dr W Campbell who, having took over the lease of a studio apartment in Havant in September 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative flats in Havant with 100 year plus lease were in the region of £193,400. The average amount of ground rent was £65 invoiced every twelve months. The lease ended in 2085. Having 59 years left we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including expenses.
In 2013 we were contacted by Mrs V Sharif who, having owned a one bedroom apartment in Havant in March 2008. The question was if we could approximate the price would likely be for a ninety year lease extension. Similar properties in Havant with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease termination date was in 2096. Considering the 70 years remaining we approximated the compensation to the freeholder for the lease extension to be within £10,500 and £12,000 plus legals.