As the length of the unexpired term of a Southbourne domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years remaining then this decrease may be negligible however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Southbourne will meet the qualifying criteria; nevertheless a lawyer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Southbourne can be a difficult process. We recommend you procure professional help from a conveyancer 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 dealing with Southbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leo was the the leasehold proprietor of a conversion flat in Southbourne being marketed with a lease of just over 72 years remaining. Leo informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr Matthew Gunderson took over the lease of a studio apartment in Southbourne in October 1999. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Southbourne with 100 year plus lease were in the region of £261,600. The mid-range ground rent payable was £60 collected monthly. The lease elapsed in 2078. Having 52 years outstanding we calculated the premium to the landlord to extend the lease to be within £39,000 and £45,000 not including legals.
In 2012 we were called by Mrs J Turner who, having took over the lease of a basement flat in Southbourne in April 2011. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative premises in Southbourne with a long lease were valued about £218,000. The mid-range amount of ground rent was £45 collected monthly. The lease lapsed in 2089. Considering the 63 years unexpired we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of legals.