Owning a flat usually means owning a lease of the property, which has a finite term of years. This 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 Southville. Inevitably, the period of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the property has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Southville have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Do give due consideration before delaying your Southville lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease
Leasehold residencies in Southville with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 Southville can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Southville lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison was the the leasehold owner of a studio apartment in Southville being sold with a lease of fraction over 72 years left. Harrison informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Harrison to invoke his statutory right. Harrison procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Last year we were phoned by Mr and Mrs. D Kelly , who took over the lease of a garden flat in Southville in October 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Similar properties in Southville with 100 year plus lease were valued around £218,000. The average ground rent payable was £45 billed monthly. The lease lapsed in 2089. Having 63 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus professional charges.
Last Autumn we were called by Dr W Howard , who purchased a newly refurbished flat in Southville in January 2005. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative premises in Southville with a long lease were valued around £265,000. The average amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2100. Given that there were 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.