Southwater leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher premium will be payable. Leasehold owners in Southwater will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Southwater with over 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea Building Society | 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service will provide you enhanced control over the value of your Southwater leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Samuel was the the leasehold owner of a conversion apartment in Southwater on the market with a lease of a few days over 59 years outstanding. Samuel on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Samuel to invoke his statutory right. Samuel procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Last Christmas we were approach by Mr Finn Torres , who took over the lease of a one bedroom apartment in Southwater in March 1996. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Southwater with a long lease were worth £206,200. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish in 2082. Given that there were 56 years left we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus costs.
In 2012 we were contacted by Dr P Clarke who, having completed a purpose-built apartment in Southwater in February 1996. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Similar properties in Southwater with a long lease were worth £300,000. The average amount of ground rent was £50 billed monthly. The lease expired on 20 February 2102. Considering the 76 years left we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.