The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in New Southgate may extend the lease for an additional 90 years in accordance with statute. Do think carefully before delaying your New Southgate lease extension. Postponing the costs today simply increases the price you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with handle New Southgate 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.
Twenty four months ago Dylan, started to get close to the eighty-year threshold with the lease on his garden flat in New Southgate. Having bought his property two decades ago, the unexpired term was of minimal relevance. Luckily, he recognised he needed to take steps soon on Extending the lease. Dylan arranged for a lease extension just in the nick of time last September. Dylan and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had dropped lower than 80 years, the premium would have escalated by at least £1,025.
In 2012 we were phoned by Dr Kirsty Petit who, having acquired a recently refurbished apartment in New Southgate in February 2012. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative residencies in New Southgate with an extended lease were in the region of £260,200. The average ground rent payable was £65 billed monthly. The lease concluded on 14 April 2091. Having 66 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal for a New Southgate premises is 23 Beaconsfield Road in July 2013. The Tribunals decided that the amount payable was £31,203 for the freehold. This case related to 2 flats. The number of years remaining on the existing lease(s) was 70.31 years.