Portsmouth leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease dips lower than 80 years - otherwise a higher amount will be payable. Flat owners in Portsmouth will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Portsmouth with more than 100 years remaining 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
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 in-depth market knowledge and the close ties they enjoy with Portsmouth valuers.
Two years ago Zachary, started to get close to the 80-year mark with the lease on his purpose- built apartment in Portsmouth. Having bought his flat two decades ago, the lease term was of little relevance. by good luck, he noticed he would imminently be paying an inflated amount for a lease extension. Zachary extended the lease at the eleventh hour last August. Zachary and the landlord ultimately settled on an amount of £6,000 . If the lease had gone to less than 80 years, the price would have increased by a minimum £1,000.
Ms B Garcia owned a one bedroom flat in Portsmouth in November 1998. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Portsmouth with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 invoiced quarterly. The lease finished in 2098. Taking into account 72 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
In 2014 we were called by Mr and Mrs. Y González who, having took over the lease of a first floor apartment in Portsmouth in July 2009. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in Portsmouth with a long lease were valued about £261,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease finished in 2078. Given that there were 52 years remaining we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of legals.