There is no doubt about it a leasehold property in Portishead is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 99 years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Portishead will meet the qualifying criteria; nevertheless a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Portishead with in excess of 100 years outstanding 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 premises. In such situations there is often little to be gained by buying the reversionary interest 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Portishead,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Portishead valuers.
Trailing unsuccessful discussions with the freeholder of her leasehold apartment in Portishead, Niamh started the lease extension process as the 80 year mark was quickly nearing. The transaction completed in September 2010. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were approached by Mr U Khan who, having acquired a one bedroom flat in Portishead in June 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Portishead with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2096. Considering the 71 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.
In 2011 we were approached by Mrs Hollie García who, having acquired a basement apartment in Portishead in September 2011. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar flats in Portishead with an extended lease were valued about £225,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease lapsed on 13 March 2085. Having 60 years remaining we approximated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus expenses.