Top reasons for Southmead lease extension

Main reasons to commence your Southmead lease extension today:

A Southmead leasehold property depreciates with the years remaining on the lease.

For those whose Southmead home is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.

Southmead property with a lease extension is almost the same value as a freehold

Leasehold premises in Southmead with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to loan monies with a short lease

Lenders are tightening their criteria and a meaningful number now require flats to have a minimum of 60 if not 70 years left at the expiry of the mortgage. As plenty of flats in Southmead were built in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

Get in touch with one of our Southmead lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Southmead,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Southmead valuers.

Southmead Lease Extension Case Studies:

Natalie, Southmead, Bristol,

After unsuccessful negotiations with the freeholder of her first floor apartment in Southmead, Natalie initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The transaction was finalised in September 2007. The freeholder’s charges were negotiated to a tad over 450 pounds.

Southmead case:

Ms Abigail Walker owned a garden apartment in Southmead in March 2001. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative homes in Southmead with 100 year plus lease were valued around £257,800. The average ground rent payable was £65 billed annually. The lease terminated on 10 February 2091. Taking into account 65 years unexpired we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.

Southmead case:

In 2009 we were phoned by Mr Sam François who, having was assigned a lease of a basement flat in Southmead in May 2012. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical premises in Southmead with an extended lease were worth £196,400. The mid-range ground rent payable was £55 collected quarterly. The lease finished on 2 September 2080. Having 54 years left we calculated the premium to the landlord to extend the lease to be within £35,200 and £40,600 plus legals.