As the length of the unexpired term of a Southport residential lease lessens so does its value and therefore the value of your property. Where the lease has, beyond 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Southport will meet the qualifying criteria; that being said a lawyer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Southport with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Southport can be a difficult process. We recommend you get 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 a wealth of experience dealing with Southport lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Ben, started to get near to the 80-year mark with the lease on his leasehold flat in Southport. Having purchased his flat two decades ago, the lease term was of no significance. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Ben arranged for a lease extension at the eleventh hour last June. Ben and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If the lease had gone lower than eighty years, the amount would have become more exhorbitant by at least £900.
Mrs Grace Young moved into a garden flat in Southport in March 2010. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Southport with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease ended on 13 April 2100. Taking into account 74 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Dr Imogen Patel moved into a studio flat in Southport in August 2009. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Similar flats in Southport with an extended lease were valued about £243,000. The average amount of ground rent was £65 billed yearly. The lease expired on 24 August 2089. Considering the 63 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.