When it comes to long leasehold property in Southwell, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Residents in Southwell with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has under eighty years left, under the current statute the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Southwell with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Southwell can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Southwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix owned a 2 bedroom flat in Southwell on the market with a lease of fraction over 61 years unexpired. Felix informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Felix to invoke his statutory right. Felix procured expert legal guidance and secured satisfactory deal informally and sell the flat.
Mr V Ramírez bought a purpose-built flat in Southwell in April 2000. We are asked if we could approximate the price could be for a ninety year lease extension. Identical homes in Southwell with an extended lease were in the region of £193,400. The average ground rent payable was £65 invoiced per annum. The lease elapsed in 2085. Considering the 59 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including costs.
Mr and Mrs. O Mercier moved into a purpose-built apartment in Southwell in September 1996. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar residencies in Southwell with 100 year plus lease were valued about £255,000. The average amount of ground rent was £50 invoiced yearly. The lease finished on 10 July 2096. Given that there were 70 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of expenses.