With a residential leasehold premises in Southwark, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Residents in Southwark with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has less than eighty years outstanding, under the current statute the freeholder can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Southwark can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge procuring Southwark lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the freeholder of her one bedroom flat in Southwark, Lauren started the lease extension process as the 80 year threshold was fast advancing. The legal work completed in September 2011. The freeholder’s costs were negotiated to slightly above 500 GBP.
Last Summer we were contacted by Mr and Mrs. V Moreau , who acquired a first floor apartment in Southwark in September 2005. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Southwark with 100 year plus lease were valued about £203,200. The average amount of ground rent was £65 billed yearly. The lease expired in 2087. Taking into account 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Southwark flat is 1-41 Royal Tower Lodge 40 Cartwright Street in April 2013. the tribunal adding the agreed value of capitalised ground rents and the reversion the price to be paid for the freehold was £1,187,000 This case related to 41 flats. The remaining number of years on the lease was 107 years.