New Southgate leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most New Southgate tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in New Southgate you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
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 all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Leeds Building Society | |
| Skipton Building Society | |
| Virgin |
Retaining our service will provide you increased control over the value of your New Southgate leasehold, as your property will be more valuable and saleable in respect of lease length should you decide 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.
Subsequent to protracted correspondence with the landlord of her first floor flat in New Southgate, Courtney commenced the lease extension process just as the lease was approaching the critical eighty-year deadline. The transaction completed in April 2010. The landlord’s fees were negotiated to below 500 GBP.
Last Summer we were contacted by Ms B Girard , who took over the lease of a purpose-built apartment in New Southgate in May 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in New Southgate with 100 year plus lease were in the region of £235,600. The mid-range amount of ground rent was £60 billed yearly. The lease terminated in 2088. Having 62 years outstanding we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of fees.
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 affected 2 flats. The unexpired term was 70.31 years.