Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ventnor. Inevitably, the length of lease left reduces over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Ventnor have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give due attention before putting off your Ventnor lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
Leasehold residencies in Ventnor with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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. |
Lease extensions in Ventnor can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 a wealth of experience 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.
Last year Evan, started to get near to the 80-year mark with the lease on his purpose- built flat in Ventnor. In buying his flat two decades ago, the length of the lease was of no significance. by good luck, he became aware that he needed to take action soon on Extending the lease. Evan arranged for a lease extension just under the wire last March. Evan and the landlord subsequently settled on an amount of £5,500 . If the lease had fallen below 80 years, the price would have increased by at least £975.
Last Christmas we were phoned by Dr Caleb Clark , who was assigned a lease of a purpose-built apartment in Ventnor in September 1997. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Ventnor with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 collected monthly. The lease concluded in 2102. Taking into account 76 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Last Spring we were phoned by Mr R Campbell , who completed a studio flat in Ventnor in October 2004. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Identical properties in Ventnor with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease ran out in 2082. Given that there were 56 years unexpired we calculated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including professional charges.