There is no doubt about it a leasehold flat or house in Ventnor is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 100 years to run then this decrease may be negligible however 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 termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Ventnor will qualify for this right; however a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Ventnor can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Ventnor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the freeholder of her garden apartment in Ventnor, Lauren initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The lease extension was concluded in October 2009. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. I Gray completed a garden apartment in Ventnor in April 1996. We are asked if we could estimate the price could be for a 90 year lease extension. Identical homes in Ventnor with an extended lease were worth £250,000. The average amount of ground rent was £50 billed monthly. The lease came to a finish in 2094. Having 69 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
In 2012 we were called by Dr Tyler Martin who, having purchased a one bedroom flat in Ventnor in November 2000. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative residencies in Ventnor with a long lease were worth £285,000. The mid-range ground rent payable was £55 billed per annum. The lease lapsed on 6 March 2105. Considering the 80 years left we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.