Lee On The Solent leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Lee On The Solent enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Lee On The Solent you should investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Lee On The Solent leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay
Leasehold premises in Lee On The Solent with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Lee On The Solent can be a difficult process. We recommend you get guidance from a lawyer and valuer 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 dealing with Lee On The Solent lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Daniel, came seriously close to the 80-year mark with the lease on his garden apartment in Lee On The Solent. In buying his property 19 years ago, the length of the lease was of minimal interest. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Daniel extended the lease at the eleventh hour last May. Daniel and the landlord ultimately settled on an amount of £5,500 . If the lease had slid below 80 years, the sum would have become more exhorbitant by at least £1,025.
Last Spring we were called by Ms Kayleigh Collins , who completed a newly refurbished flat in Lee On The Solent in May 2007. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical flats in Lee On The Solent with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 collected yearly. The lease terminated on 18 July 2086. Taking into account 60 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including expenses.
Dr Liam Ricardo completed a first floor flat in Lee On The Solent in April 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable residencies in Lee On The Solent with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 collected annually. The lease came to a finish on 27 April 2097. Having 71 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.