The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Southsea have the legal entitlement to extend the lease for a further ninety years under legislation. Please think carefully before delaying your Southsea lease extension. Shelving the costs now simply escalates the amount you will eventually have to pay to extend the lease.
Leasehold properties in Southsea with more than 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 purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Southsea,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Southsea valuers.
Jason was the the leasehold owner of a conversion apartment in Southsea on the market with a lease of a few days over fifty eight years remaining. Jason on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Summer we were e-mailed by Mr Lewis Moreau , who took over the lease of a one bedroom flat in Southsea in January 1997. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative homes in Southsea with an extended lease were valued about £210,000. The average ground rent payable was £50 collected monthly. The lease concluded in 2104. Having 79 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
Mr and Mrs. J Leroy acquired a first floor flat in Southsea in July 1995. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Similar premises in Southsea with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed annually. The lease terminated on 14 August 2094. Taking into account 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.