Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Southport. Inevitably, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Southport have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give careful attention before putting off your Southport lease extension. Putting off that expense now only increases the price you will eventually incur for a lease extension
Leasehold residencies in Southport with more than one hundred years outstanding on the lease are sometimes 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Using our service gives you better control over the value of your Southport leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the landlord of her one bedroom apartment in Southport, Lydia commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The transaction was concluded in July 2009. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. K Bailey bought a garden apartment in Southport in March 2000. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical flats in Southport with an extended lease were valued around £280,000. The average amount of ground rent was £45 invoiced annually. The lease terminated on 19 August 2095. Given that there were 70 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
Mr and Mrs. W Anderson owned a newly refurbished flat in Southport in March 2007. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar properties in Southport with 100 year plus lease were valued about £223,400. The average ground rent payable was £60 collected monthly. The lease ended in 2084. Considering the 59 years left we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of legals.