Main reasons to start your Southampton lease extension

Main reasons to commence your Southampton lease extension today:

Increase your lease and increase your Southampton property value

As the the remaining lease term of a Southampton domestic lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Southampton will qualify for this right; however a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Southampton with in excess of one hundred years remaining on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not lend with a short lease

The trend since over the last decade has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Southampton?

The lawyers that we work with undertake Southampton 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.

Southampton Lease Extension Example Cases:

Megan, Southampton, Hampshire,

After lengthy negotiations with the landlord of her one bedroom apartment in Southampton, Megan commenced the lease extension process as the eighty year mark was quickly approaching. The transaction completed in August 2014. The freeholder’s fees were kept to an absolute minimum.

Southampton case:

In 2009 we were e-mailed by Mr and Mrs. L Bernard who, having purchased a one bedroom apartment in Southampton in November 2007. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Southampton with a long lease were worth £200,800. The average amount of ground rent was £65 billed yearly. The lease expired on 25 March 2086. Taking into account 60 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including legals.

Southampton case:

In 2014 we were contacted by Ms Y Vincent who, having was assigned a lease of a first floor flat in Southampton in July 2008. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Southampton with a long lease were valued about £255,000. The average amount of ground rent was £50 billed yearly. The lease expiry date was on 22 February 2097. Having 71 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.