For anyone whose Southbourne home is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Southbourne,the lease extension solicitors 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.
Kai owned a high value flat in Southbourne on the market with a lease of a little over 72 years left. Kai on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Kai to invoke his statutory right. Kai procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. G Scott moved into a one bedroom apartment in Southbourne in November 2002. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative residencies in Southbourne with 100 year plus lease were in the region of £173,800. The mid-range ground rent payable was £65 collected every twelve months. The lease lapsed on 8 August 2080. Having 55 years unexpired we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.
Mrs Maisie Edwards was assigned a lease of a studio apartment in Southbourne in May 2012. We are asked if we could estimate the price could be for a 90 year lease extension. Similar homes in Southbourne with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced every twelve months. The lease expiry date was on 27 November 2091. Considering the 66 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.