It’s an underpublicised truth that a Havant residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Havant property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. 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 be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Havant with over 100 years remaining 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 upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Havant lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing lengthy negotiations with the freeholder of her garden flat in Havant, Isabel started the lease extension process as the 80 year deadline was swiftly approaching. The legal work was finalised in March 2007. The landlord’s costs were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. M Petit who, having moved into a one bedroom flat in Havant in September 2003. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative premises in Havant with an extended lease were in the region of £265,000. The average ground rent payable was £55 collected per annum. The lease ended in 2100. Taking into account 74 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
Mr P Johnson took over the lease of a basement flat in Havant in November 2005. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Havant with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 invoiced monthly. The lease terminated on 6 March 2080. Considering the 54 years remaining we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.