Southam leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Southam will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Nationwide Building Society |
The conveyancing solicitors that we work with handle Southam 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 conveyancer we work with provide it.
Kian was the the leasehold proprietor of a high value apartment in Southam on the market with a lease of a few days over fifty eight years remaining. Kian on an informal basis contacted 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 on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Kian to exercise his statutory right. Kian obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were approached by Dr Jasper Sánchez who, having took over the lease of a ground floor flat in Southam in March 2003. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Identical flats in Southam with an extended lease were valued about £250,000. The average ground rent payable was £50 collected every twelve months. The lease finished in 2095. Considering the 69 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
Last Christmas we were e-mailed by Mr J González , who acquired a recently refurbished flat in Southam in September 1996. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar homes in Southam with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £60 collected monthly. The lease ended on 6 October 2106. Given that there were 80 years remaining we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.