New Southgate leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher amount will be payable. Leasehold owners in New Southgate will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a freeholder in New Southgate,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 in-depth market knowledge and the close ties they enjoy with New Southgate valuers.
Tyler was the the leasehold proprietor of a high value flat in New Southgate on the market with a lease of just over 72 years unexpired. Tyler on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tyler to invoke his statutory right. Tyler procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Spring we were called by Dr J Martínez , who completed a ground floor apartment in New Southgate in October 2005. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative properties in New Southgate with 100 year plus lease were worth £201,200. The average ground rent payable was £55 billed quarterly. The lease concluded in 2081. Having 56 years left we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.
An example of a Freehold Enfranchisement decision for a New Southgate flat 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 unexpired term as at the valuation date was 70.31 years.