The only way is down when it comes to Southport lease terms. Southport leaseholds that have a residual term lower than 80 years will reduce in market price at a rapid rate, and the cost to extend your lease will rise.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 Southport can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 procuring Southport lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Finn, started to get near to the eighty-year mark with the lease on his one bedroom flat in Southport. In buying his flat two decades ago, the unexpired term was of little bearing. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Finn extended the lease at the eleventh hour in September. Finn and the freeholder subsequently settled on sum of £6,000 . If the lease had gone to less than 80 years, the price would have gone up by a minimum £1,000.
In 2010 we were contacted by Mrs Madeleine Gómez who, having took over the lease of a studio flat in Southport in September 1995. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparative residencies in Southport with an extended lease were worth £198,800. The average ground rent payable was £55 collected monthly. The lease elapsed on 8 February 2081. Taking into account 55 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including costs.
Last Christmas we were phoned by Dr U Morgan , who was assigned a lease of a one bedroom apartment in Southport in March 2007. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative premises in Southport with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 billed per annum. The lease expired in 2101. Given that there were 75 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.