Southsea leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Southsea residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Southsea you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service gives you enhanced control over the value of your Southsea leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Tyler, came dangerously near to the eighty-year mark with the lease on his basement flat in Southsea. Having bought his property 19 years ago, the length of the lease was of little importance. Fortunately, he became aware that he would imminently be paying an escalated premium for Extending the lease. Tyler arranged for a lease extension just in the nick of time in March. Tyler and the freeholder via the management company ultimately settled on sum of £5,000 . If he not met the deadline, the amount would have gone up by at least £1,125.
Mr and Mrs. D Flores bought a basement apartment in Southsea in September 2007. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar residencies in Southsea with an extended lease were valued around £191,400. The mid-range amount of ground rent was £55 billed annually. The lease expired in 2079. Taking into account 54 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of costs.
Mrs U Adams completed a garden apartment in Southsea in October 2007. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Identical flats in Southsea with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2099. Given that there were 74 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.