As the the remaining lease term of a Southwater residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Southwater will qualify for this right; that being said a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Southwater with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Southwater leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the freeholder of her first floor flat in Southwater, Madeleine initiated the lease extension process as the eighty year mark was quickly advancing. The transaction was finalised in August 2014. The landlord’s costs were negotiated to about 550 GBP.
In 2012 we were e-mailed by Mr John Davis who, having acquired a studio apartment in Southwater in August 2006. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Southwater with an extended lease were in the region of £233,200. The average amount of ground rent was £60 invoiced annually. The lease expiry date was in 2087. Given that there were 61 years left we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus fees.
Mr James Martin took over the lease of a studio apartment in Southwater in November 2008. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparative homes in Southwater with an extended lease were worth £171,800. The average amount of ground rent was £55 collected monthly. The lease came to a finish on 17 January 2076. Considering the 50 years outstanding we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including fees.