Main reasons to start your Portsmouth lease extension

Top reasons for lease extension now:

A Portsmouth leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Portsmouth. Clearly, the length of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Portsmouth have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful attention before delaying your Portsmouth lease extension. Holding off the cost now simply increases the price you will eventually have to pay for a lease extension

Portsmouth property with a lease extension is almost the same value as a freehold

Leasehold residencies in Portsmouth with over one hundred years outstanding 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to grant a mortgage with a short lease

Mortgage lenders have set criteria when loaning monies secured on leasehold homes. Many will simply not lend at all once the remaining lease term falls below a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than seventy years suitable security. As well as this being important when selling, it is also relevant if you are seeking to remortgage your Portsmouth property.

Why use us for your lease extension in Portsmouth?

The lawyers that we work with undertake Portsmouth 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.

Portsmouth Lease Extension Example Cases:

Ellie, Portsmouth, Hampshire,

Off the back of unsuccessful negotiations with the landlord of her leasehold apartment in Portsmouth, Ellie started the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in April 2014. The landlord’s fees were restricted to a tad over 650 GBP.

Portsmouth case:

In 2014 we were approached by Dr M Williams who, having was assigned a lease of a one bedroom flat in Portsmouth in November 2001. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical residencies in Portsmouth with an extended lease were in the region of £264,000. The average ground rent payable was £60 collected every twelve months. The lease finished on 22 August 2079. Given that there were 53 years remaining we calculated the premium to the landlord to extend the lease to be between £37,100 and £42,800 not including costs.

Portsmouth case:

Last Winter we were contacted by Dr Matthew Fournier , who owned a basement apartment in Portsmouth in July 2007. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Portsmouth with 100 year plus lease were worth £225,400. The mid-range amount of ground rent was £45 collected annually. The lease ran out in 2090. Considering the 64 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of costs.