South Cave leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying South Cave residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in South Cave you should see if your lease has between seventy and 90 years remaining. There are good reasons why a South Cave leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in South Cave,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South Cave valuers.
In 2014 Archie, came critically close to the 80-year threshold with the lease on his leasehold apartment in South Cave. Having purchased his flat two decades ago, the lease term was of minimal importance. by good luck, he noticed he would imminently be paying an escalated premium for a lease extension. Archie extended the lease at the eleventh hour last August. Archie and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £1,000.
In 2014 we were approached by Mrs P André who, having owned a one bedroom apartment in South Cave in April 1997. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar residencies in South Cave with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease terminated on 7 June 2101. Considering the 76 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Last Autumn we were called by Mr H Khan , who took over the lease of a purpose-built flat in South Cave in January 1997. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in South Cave with a long lease were worth £176,200. The average ground rent payable was £65 billed quarterly. The lease ran out in 2081. Taking into account 56 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of fees.