The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Southam have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Southam lease extension. Putting off the costs today simply increases the premium you will eventually have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancers that we work with procure 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 lawyer we work with provide it.
In recent months Finley, came dangerously near to the eighty-year threshold with the lease on his one bedroom flat in Southam. Having purchased his flat two decades ago, the unexpired term was of no significance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Finley arranged for a lease extension at the eleventh hour last August. Finley and the freeholder subsequently settled on sum of £6,000 . If he had missed the deadline, the amount would have become more exhorbitant by at least £900.
In 2009 we were approached by Mr and Mrs. C Wright who, having was assigned a lease of a recently refurbished flat in Southam in March 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Similar properties in Southam with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 billed monthly. The lease lapsed on 10 July 2085. Considering the 60 years as a residual term we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 plus fees.
Last October we were called by Mr and Mrs. W Simon , who bought a one bedroom apartment in Southam in October 2000. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable flats in Southam with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed monthly. The lease lapsed in 2096. Considering the 71 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.