There is no doubt about it a leasehold flat or house in Southville is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 125 years to run then this decrease may be fractional however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Southville will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm whether you qualify to extend your lease. 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 Southville with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Southville,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Southville valuers.
During the course of the last few months Aarav, came critically near to the eighty-year mark with the lease on his studio apartment in Southville. Having bought his property two decades ago, the length of the lease was of little interest. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Aarav arranged for a lease extension just in the nick of time in May. Aarav and the landlord in the end agreed on sum of £5,500 . If he failed to meet the deadline, the price would have become more costly by a minimum £1,000.
Last Christmas we were e-mailed by Mrs Isabel Sharif , who took over the lease of a garden flat in Southville in September 1998. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Identical flats in Southville with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired on 12 August 2077. Considering the 51 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus legals.
In 2010 we were approached by Dr T Martin who, having took over the lease of a one bedroom flat in Southville in August 2007. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in Southville with 100 year plus lease were in the region of £210,600. The average ground rent payable was £45 billed annually. The lease ended in 2088. Taking into account 62 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.