Main reasons to start your Portishead lease extension

Top reasons for lease extension now:

A Portishead lease depreciates with the years remaining on the lease.

When it comes to long leasehold property in Portishead, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than 80 years remaining. Residents in Portishead with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has under 80 years left, under the relevant Act the freeholder can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold properties in Portishead with more than one hundred 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions will not finance a property on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to get concerned at around 75 years. This may be problematic as and when you wish to sell or remortgage your flat as it will be effectively unmortgageable. You may have no immediate intention to sell but when you do your purchaser will have to wait two years before being able to commence the legal procedures for an extension to the lease.

Get in touch with one of our Portishead lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Portishead,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Portishead valuers.

Portishead Lease Extension Case Summaries:

Kelsey, Portishead, North Somerset,

In the wake of 6 months of lengthy discussions with the freeholder of her ground floor apartment in Portishead, Kelsey initiated the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was finalised in January 2014. The freeholder’s costs were kept to an absolute minimum.

Portishead case:

Last Spring we were contacted by Mr and Mrs. A Simon , who took over the lease of a garden flat in Portishead in November 1996. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical premises in Portishead with a long lease were in the region of £260,200. The average amount of ground rent was £65 billed quarterly. The lease came to a finish on 15 October 2092. Considering the 66 years remaining we approximated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of expenses.

Portishead case:

Last Christmas we were contacted by Mr Elijah Williams , who owned a studio flat in Portishead in November 2002. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Portishead with an extended lease were in the region of £198,800. The average amount of ground rent was £55 billed per annum. The lease lapsed on 20 April 2081. Taking into account 55 years remaining we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including costs.