The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Southam can extend the lease for a further ninety years under statute. Do think carefully before delaying your Southam lease extension. Postponing that expense today simply escalates the amount you will ultimately be required to pay to extend the lease.
Leasehold properties in Southam with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Southam,the lease extension lawyers 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 Southam valuers.
Last October Luke, came very near to the eighty-year threshold with the lease on his ground floor flat in Southam. Having bought his property 19 years ago, the unexpired term was of little importance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Luke arranged for a lease extension just ahead of time last January. Luke and the landlord ultimately settled on a premium of £5,000 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £1,125.
In 2013 we were phoned by Mr W Wilson who, having bought a first floor apartment in Southam in July 2006. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparable homes in Southam with a long lease were in the region of £242,600. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed in 2092. Taking into account 67 years outstanding we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus expenses.
In 2014 we were called by Mr and Mrs. P Phillips who, having purchased a newly refurbished apartment in Southam in March 2004. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical homes in Southam with an extended lease were valued about £280,000. The average amount of ground rent was £55 billed every twelve months. The lease expired in 2103. Taking into account 78 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.