The re-sale value of a leasehold property in Southwater depends on how long the lease has left to run. If it is near to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised prior to the eighty year threshold. Leasehold Reform legislation entitles Southwater qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Southwater with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
Lease extensions in Southwater can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 procuring Southwater lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the landlord of her garden flat in Southwater, Anna commenced the lease extension process just as her lease was approaching the all-important 80-year mark. The transaction was concluded in March 2009. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were contacted by Dr Grace Dupont who, having purchased a one bedroom apartment in Southwater in February 2000. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative premises in Southwater with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 invoiced per annum. The lease finished on 22 June 2106. Given that there were 80 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
Last Spring we were e-mailed by Dr F Ramírez , who purchased a one bedroom apartment in Southwater in August 2010. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative flats in Southwater with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 collected per annum. The lease expired in 2095. Given that there were 69 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.