Southampton residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Southampton,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 Southampton valuers.
Last October Aiden, started to get close to the 80-year threshold with the lease on his studio flat in Southampton. In buying his flat two decades ago, the length of the lease was of no bearing. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Aiden was able to extend his lease just ahead of time last June. Aiden and the landlord ultimately agreed on the final figure of £5,500 . If the lease had dipped to less than eighty years, the premium would have increased by at least £1,100.
Last Winter we were called by Mr C Flores , who acquired a ground floor apartment in Southampton in May 2008. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Southampton with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease concluded in 2106. Given that there were 80 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
In 2010 we were approached by Ms W Díaz who, having owned a studio apartment in Southampton in January 1998. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Similar homes in Southampton with a long lease were valued around £200,800. The mid-range ground rent payable was £65 invoiced yearly. The lease elapsed in 2086. Taking into account 60 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.