The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Southmead have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Southmead lease extension. Putting off that expense today simply escalates the premium you will eventually be required to pay for a lease extension.
Leasehold residencies in Southmead with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Southmead can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
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 Southmead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the landlord of her purpose-built apartment in Southmead, Robyn started the lease extension process just as the lease was approaching the crucial eighty-year mark. The legal work completed in April 2011. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were phoned by Dr L Peterson who, having completed a purpose-built flat in Southmead in July 2002. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Southmead with 100 year plus lease were valued about £216,000. The average ground rent payable was £60 billed annually. The lease expired on 8 April 2084. Considering the 58 years unexpired we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.
Last Christmas we were phoned by Mr and Mrs. G Michel , who moved into a first floor apartment in Southmead in October 2008. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Similar residencies in Southmead with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 invoiced monthly. The lease expired in 2104. Taking into account 78 years left we calculated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 plus expenses.