It’s a harsh certainty that a Portslade residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Portslade property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Portslade will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Portslade with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Portslade,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 in-depth market knowledge and the close ties they enjoy with Portslade valuers.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her basement flat in Portslade, Daisy commenced the lease extension process just as the lease was approaching the crucial 80-year mark. The transaction completed in October 2008. The landlord’s charges were kept to an absolute minimum.
Last month we were phoned by Dr Cameron Richardson , who acquired a first floor flat in Portslade in March 1996. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Portslade with a long lease were valued about £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease terminated in 2096. Considering the 71 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
Last Summer we were contacted by Dr Omar Stewart , who moved into a purpose-built flat in Portslade in April 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Portslade with an extended lease were in the region of £225,800. The average amount of ground rent was £60 billed per annum. The lease concluded on 22 November 2085. Given that there were 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 plus professional charges.