There is no doubt about it a leasehold property in Southbourne is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Southbourne will qualify for this right; however a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Southbourne with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Leeds Building Society |
Irrespective of whether you are a tenant or a landlord in Southbourne,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Southbourne valuers.
Logan owned a high value flat in Southbourne on the market with a lease of a little over sixty years remaining. Logan on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Logan to exercise his statutory right. Logan obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Dr Y Turner owned a basement apartment in Southbourne in September 1995. We are asked if we could approximate the price would be to extend the lease by 90 years. Similar premises in Southbourne with 100 year plus lease were valued around £225,400. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out on 27 September 2090. Considering the 64 years left we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of legals.
In 2012 we were called by Mrs Caitlin Lee who, having completed a studio apartment in Southbourne in August 2009. We are asked if we could approximate the price would be to prolong the lease by 90 years. Identical properties in Southbourne with a long lease were valued about £270,000. The average ground rent payable was £55 collected quarterly. The lease finished on 7 January 2101. Having 75 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.