There is no doubt about it a leasehold property in Southport is a wasting asset as a result of the shortening lease. Where the lease has, beyond 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Southport will qualify for this right; however a conveyancer will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Southport with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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 valuer 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 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 2014 Callum, came very near to the 80-year threshold with the lease on his garden apartment in Southport. Having bought his property 19 years previously, the length of the lease was of no significance. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Callum extended the lease just in the nick of time in July. Callum and the landlord eventually settled on a premium of £5,000 . If the lease had fallen below 80 years, the sum would have become more costly by at least £1,075.
In 2010 we were phoned by Mrs A Cook who, having completed a basement flat in Southport in March 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Southport with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 collected annually. The lease ran out on 2 August 2099. Given that there were 73 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2013 we were contacted by Mr and Mrs. S Mason who, having was assigned a lease of a garden apartment in Southport in July 2002. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparable properties in Southport with an extended lease were valued about £235,600. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out on 20 April 2088. Given that there were 62 years remaining we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.