Southville leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher premium will be payable. Leasehold owners in Southville will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 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 |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with undertake Southville lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Eli, started to get near to the 80-year threshold with the lease on his purpose- built flat in Southville. Having purchased his home 19 years ago, the unexpired term was of little concern. by good luck, he became aware that he needed to take action soon on Extending the lease. Eli was able to extend his lease just under the wire in June. Eli and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had descended lower than eighty years, the price would have escalated by a minimum £975.
In 2012 we were phoned by Mr and Mrs. H Murphy who, having purchased a basement apartment in Southville in August 2010. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Southville with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 billed annually. The lease expired in 2100. Considering the 75 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Mr and Mrs. B Johnson was assigned a lease of a studio flat in Southville in February 2003. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Southville with a long lease were valued about £168,800. The average ground rent payable was £60 invoiced yearly. The lease expired on 7 April 2080. Given that there were 55 years left we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.