Portland leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. Leasehold owners in Portland will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| The Mortgage Works |
The conveyancers that we work with procure Portland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of protracted negotiations with the landlord of her purpose-built flat in Portland, Danielle initiated the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension was concluded in August 2006. The freeholder’s costs were negotiated to under 550 GBP.
Last Summer we were contacted by Mrs Aimee Peterson , who moved into a first floor apartment in Portland in February 2001. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative residencies in Portland with an extended lease were valued about £264,000. The average amount of ground rent was £60 collected quarterly. The lease elapsed in 2079. Considering the 53 years left we estimated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including legals.
Mr and Mrs. S González purchased a one bedroom flat in Portland in August 2010. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparative homes in Portland with a long lease were valued around £225,400. The mid-range ground rent payable was £45 collected per annum. The lease finished on 22 September 2090. Having 64 years left we estimated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 not including professional charges.