The closer a residential lease in Southwater gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Southwater will qualify for this right; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Southwater with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Southwater lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Ryan owned a studio apartment in Southwater being sold with a lease of just over 59 years remaining. Ryan on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2012 we were contacted by Mr and Mrs. W Davies who, having was assigned a lease of a studio apartment in Southwater in January 2010. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Southwater with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £65 invoiced yearly. The lease lapsed on 21 March 2094. Taking into account 68 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
Dr V Howard acquired a first floor flat in Southwater in January 2012. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative flats in Southwater with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 collected quarterly. The lease finished in 2083. Given that there were 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.