Unfortunately that a Portsmouth residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Portsmouth property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Portsmouth will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Portsmouth with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Portsmouth can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Portsmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin was the the leasehold owner of a conversion flat in Portsmouth being sold with a lease of just over 72 years left. Benjamin informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Dr Melissa Allen moved into a first floor flat in Portsmouth in April 2000. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Identical residencies in Portsmouth with a long lease were valued around £245,000. The average ground rent payable was £45 billed every twelve months. The lease ended on 18 September 2093. Given that there were 68 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2014 we were e-mailed by Ms M Jackson who, having completed a purpose-built apartment in Portsmouth in February 2000. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical homes in Portsmouth with a long lease were worth £280,000. The mid-range ground rent payable was £55 billed quarterly. The lease concluded in 2104. Having 79 years as a residual term we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.