Southbourne leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Southbourne enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Southbourne you should see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Southbourne flat owner with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Southbourne can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Southbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Luke, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Southbourne. In buying his home two decades ago, the lease term was of no interest. by good luck, he became aware that he needed to take action soon on a lease extension. Luke arranged for a lease extension just in the nick of time in May. Luke and the freeholder via the managing agents subsequently agreed on the final figure of £5,500 . If the lease had slid below 80 years, the premium would have increased by at least £1,000.
Mrs F Clarke bought a one bedroom apartment in Southbourne in November 2010. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar premises in Southbourne with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected every twelve months. The lease concluded in 2076. Having 50 years remaining we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 plus expenses.
Last year we were approach by Mr and Mrs. F Ward , who moved into a garden flat in Southbourne in March 2001. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Southbourne with an extended lease were valued about £208,200. The mid-range amount of ground rent was £65 collected annually. The lease finished in 2087. Considering the 61 years outstanding we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including costs.