It’s an underpublicised truth that a Ventnor residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Ventnor property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Ventnor will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Ventnor leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kai was the the leasehold proprietor of a conversion flat in Ventnor being sold with a lease of a little over 72 years outstanding. Kai informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Mr and Mrs. A Evans who, having owned a one bedroom apartment in Ventnor in November 2009. We are asked if we could estimate the price could be to extend the lease by an additional years. Identical residencies in Ventnor with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 collected per annum. The lease ran out on 12 November 2090. Having 64 years remaining we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus professional charges.
Last Summer we were phoned by Mr and Mrs. J Martinez , who purchased a purpose-built apartment in Ventnor in April 2006. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar homes in Ventnor with an extended lease were worth £270,000. The average ground rent payable was £55 invoiced monthly. The lease elapsed in 2101. Taking into account 75 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.