Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Southport. Clearly, the term of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Southport have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful deliberation before delaying your Southport lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Southport with in excess of 100 years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service will provide you enhanced 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 protracted negotiations with the landlord of her studio apartment in Southport, Daisy started the lease extension process just as the lease was approaching the all-important eighty-year mark. The lease extension completed in August 2006. The freeholder’s fees were kept to an absolute minimum.
Last year we were phoned by Mr and Mrs. V Parker , who purchased a studio flat in Southport in October 1996. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar homes in Southport with a long lease were in the region of £166,800. The average ground rent payable was £50 collected quarterly. The lease expired on 2 February 2076. Taking into account 50 years remaining we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.
In 2014 we were phoned by Dr E Gómez who, having moved into a studio flat in Southport in March 1995. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparable properties in Southport with 100 year plus lease were worth £280,000. The average ground rent payable was £45 billed every twelve months. The lease terminated in 2096. Considering the 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.