It’s a harsh certainty that a Southam residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Southam property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Southam will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Southam with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord 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.
16 months ago David, came very near to the eighty-year threshold with the lease on his leasehold flat in Southam. In buying his home 18 years previously, the unexpired term was of little bearing. by good luck, he recognised he needed to take action soon on Extending the lease. David extended the lease just in the nick of time last August. David and the landlord subsequently agreed on sum of £5,000 . If the lease had slipped lower than eighty years, the figure would have become more exhorbitant by a minimum £1,050.
Last Summer we were contacted by Mrs A Jones , who bought a one bedroom flat in Southam in January 2005. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable flats in Southam with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2088. Taking into account 62 years outstanding we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of fees.
Dr H Martinez bought a one bedroom apartment in Southam in January 2010. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Southam with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 collected per annum. The lease expiry date was on 1 March 2099. Considering the 73 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.