Why you should start your Portland lease extension

Main reasons to start your Portland lease extension today:

Increase your lease and increase your Portland property value

The market value of a leasehold property in Portland is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded in advance of the eighty year threshold. Statute entitles Portland qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

Portland property with a lease extension has roughly the same value as a freehold

Leasehold premises in Portland with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to grant a mortgage with a short lease

Almost all banks and building societies require a lengthy amount of time remaining on a leasehold residence before they will contemplate providing a mortgage on it. Even if you don't require a mortgage, you should be mindful that it is likely that someone wishing to acquire your property in the future might well do, so in the event that they are unable to secure a mortgage, then the market price of the property could suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

What makes us experts in Portland lease extensions?

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

Portland Lease Extension Case Studies:

Sian, Portland, Dorset,

Off the back of protracted discussions with the landlord of her leasehold flat in Portland, Sian initiated the lease extension process just as her lease was nearing the all-important 80-year threshold. The lease extension completed in March 2007. The freeholder’s costs were restricted to a tad over 600 GBP.

Portland case:

In 2012 we were called by Dr Ethan Johnson who, having took over the lease of a basement flat in Portland in August 2012. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Portland with 100 year plus lease were in the region of £227,800. The average amount of ground rent was £45 collected every twelve months. The lease expired in 2091. Taking into account 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.

Portland case:

Last Spring we were contacted by Mr and Mrs. P Lambert , who purchased a basement flat in Portland in August 2007. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Portland with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease finished in 2102. Having 76 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.