Southwater leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Southwater will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Southwater,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Southwater valuers.
Daniel owned a studio flat in Southwater on the market with a lease of a few days over 61 years unexpired. Daniel on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mr J Sharif bought a garden apartment in Southwater in January 2012. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable homes in Southwater with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease lapsed on 12 May 2101. Given that there were 75 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
In 2014 we were approached by Mr and Mrs. H Richardson who, having took over the lease of a one bedroom flat in Southwater in November 1998. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Identical flats in Southwater with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 invoiced quarterly. The lease end date was on 14 October 2090. Taking into account 64 years outstanding we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus legals.