As the length of the unexpired term of a Southwater domestic lease decreases so does its value and therefore the value of your property. If the lease has, more than 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Southwater will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Southwater with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Southwater can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.
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 in-depth market knowledge 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 negotiations with the freeholder of her two bedroom apartment in Southwater, Kate initiated the lease extension process as the eighty year threshold was swiftly approaching. The legal work was concluded in March 2007. The freeholder’s fees were negotiated to about 700 pounds.
Mr Charlie Martin took over the lease of a basement flat in Southwater in June 2004. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Southwater with an extended lease were in the region of £280,000. The average amount of ground rent was £45 billed yearly. The lease finished on 22 March 2095. Taking into account 70 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.
Last Autumn we were e-mailed by Dr N Peterson , who owned a purpose-built flat in Southwater in August 2004. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Southwater with 100 year plus lease were valued around £223,400. The average ground rent payable was £60 collected every twelve months. The lease lapsed on 20 September 2084. Taking into account 59 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of costs.