There is no doubt about it a leasehold flat or house in Southsea is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Southsea will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Southsea with over 100 years left 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 reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Leeds Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in Southsea,the lease extension lawyers that we work with will always be happy 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.
In 2014 Mason, started to get near to the 80-year mark with the lease on his one bedroom flat in Southsea. In buying his flat 18 years ago, the length of the lease was of no relevance. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. Mason arranged for a lease extension just under the wire last May. Mason and the freeholder via the management company subsequently agreed on an amount of £5,500 . If the lease had descended to less than eighty years, the amount would have become more exhorbitant by at least £950.
In 2011 we were contacted by Dr Zoe Bennett who, having purchased a recently refurbished apartment in Southsea in February 1996. We are asked if we could estimate the price would be to extend the lease by an additional years. Identical homes in Southsea with an extended lease were in the region of £280,000. The average amount of ground rent was £45 collected per annum. The lease expired in 2097. Having 71 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
Dr V Brown was assigned a lease of a newly refurbished apartment in Southsea in May 1999. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Southsea with a long lease were worth £225,800. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed in 2086. Having 60 years as a residual term we calculated the premium to the landlord for the lease extension to be within £25,700 and £29,600 exclusive of costs.