The value of Portland leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is less than 80 years
Leasehold properties in Portland with more than 100 years left 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 buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Portland,the lease extension lawyers 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 Portland valuers.
After unsuccessful discussions with the landlord of her two bedroom apartment in Portland, Yasmin commenced the lease extension process as the 80 year threshold was swiftly nearing. The transaction was concluded in August 2007. The freeholder’s costs were negotiated to a tad over 500 pounds.
Dr Isobel Davies acquired a studio flat in Portland in August 1998. We are asked if we could approximate the price would be to prolong the lease by ninety years. Identical homes in Portland with 100 year plus lease were in the region of £176,200. The average amount of ground rent was £65 invoiced monthly. The lease expired on 27 August 2081. Given that there were 56 years unexpired we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus fees.
In 2013 we were phoned by Ms P Mason who, having was assigned a lease of a one bedroom flat in Portland in August 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable residencies in Portland with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed in 2092. Given that there were 67 years outstanding we estimated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including expenses.