Southwell leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Southwell will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Southwell with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 Southwell,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Southwell valuers.
Theo owned a conversion flat in Southwell on the market with a lease of just over 59 years unexpired. Theo on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr U André owned a ground floor apartment in Southwell in August 2001. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Southwell with 100 year plus lease were worth £255,000. The average ground rent payable was £50 collected every twelve months. The lease terminated on 17 August 2097. Given that there were 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
In 2010 we were approached by Ms Alisha Michel who, having acquired a ground floor apartment in Southwell in February 2012. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparative homes in Southwell with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 collected every twelve months. The lease terminated in 2077. Considering the 51 years left we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus professional charges.