Unfortunately that a Ventnor residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Ventnor property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. Most flat owners in Ventnor will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Ventnor with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Ventnor,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ventnor valuers.
18 months ago Alex, started to get near to the eighty-year mark with the lease on his two bedroom flat in Ventnor. Having bought his home 18 years ago, the length of the lease was of minimal importance. Luckily, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Alex extended the lease just under the wire in June. Alex and the freeholder via the management company ultimately settled on an amount of £5,500 . If the lease had fallen below eighty years, the premium would have become more exhorbitant by at least £1,075.
Last Christmas we were approach by Mr and Mrs. J Nelson , who completed a garden apartment in Ventnor in September 2002. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical properties in Ventnor with an extended lease were in the region of £193,400. The average amount of ground rent was £65 invoiced annually. The lease lapsed on 22 January 2085. Taking into account 59 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.
Last May we were e-mailed by Mr and Mrs. M Lee , who took over the lease of a garden flat in Ventnor in March 2012. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Ventnor with an extended lease were worth £255,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish in 2096. Given that there were 70 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.