The nearer a residential lease in Southsea nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Southsea will meet the qualifying criteria; nevertheless a lawyer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Southsea 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.
Trailing protracted negotiations with the landlord of her basement apartment in Southsea, Katherine started the lease extension process just as her lease was nearing the critical 80-year mark. The transaction was concluded in March 2006. The landlord’s costs were restricted to a tad over five hundred GBP.
Mr and Mrs. A Davis bought a newly refurbished flat in Southsea in March 2003. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative residencies in Southsea with a long lease were valued around £250,400. The mid-range amount of ground rent was £65 collected per annum. The lease came to a finish in 2090. Taking into account 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus professional charges.
Last November we were approach by Dr K Wood , who bought a first floor flat in Southsea in September 1995. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical premises in Southsea with 100 year plus lease were worth £184,000. The average amount of ground rent was £55 billed monthly. The lease came to a finish in 2079. Given that there were 53 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.