Southville leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Flat owners in Southville will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not qualify. There are also strict 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 generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle 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.
In the wake of 9 months of lengthy discussions with the freeholder of her ground floor flat in Southville, Daisy initiated the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was concluded in June 2008. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were contacted by Mr Harry François who, having took over the lease of a ground floor apartment in Southville in June 1998. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical homes in Southville with a long lease were in the region of £285,000. The average ground rent payable was £55 invoiced every twelve months. The lease expiry date was in 2105. Having 80 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Mr and Mrs. J Patel acquired a one bedroom apartment in Southville in August 1997. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable properties in Southville with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 billed yearly. The lease came to a finish on 7 August 2085. Taking into account 60 years outstanding we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including fees.