When it comes to domestic leasehold property in Portsmouth, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than 80 years remaining. Anyone in Portsmouth with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When the lease term has below eighty years remaining, under the relevant statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Portsmouth,the lease extension lawyers 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 Portsmouth valuers.
Jasper was the the leasehold owner of a high value flat in Portsmouth being marketed with a lease of just over 59 years remaining. Jasper on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Christmas we were phoned by Dr Ellie Ramírez , who acquired a basement apartment in Portsmouth in October 2008. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Similar flats in Portsmouth with 100 year plus lease were valued about £285,000. The average ground rent payable was £55 billed per annum. The lease elapsed on 11 March 2105. Considering the 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.
In 2014 we were contacted by Mr Muhammad Edwards who, having was assigned a lease of a newly refurbished apartment in Portsmouth in August 1998. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar residencies in Portsmouth with an extended lease were in the region of £200,800. The average amount of ground rent was £65 billed per annum. The lease expired in 2085. Having 60 years remaining we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 plus fees.