Southwell leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, 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 incurring an additional element called marriage value. Flat owners in Southwell will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain circumstances 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 generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Santander |
Lease extensions in Southwell can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor 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 in-depth market knowledge 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.
Last year Leo, started to get close to the eighty-year mark with the lease on his leasehold flat in Southwell. In buying his home two decades ago, the length of the lease was of little importance. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. Leo was able to extend his lease just under the wire last June. Leo and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had descended lower than eighty years, the amount would have increased by at least £1,100.
Mr M Jackson acquired a studio flat in Southwell in September 2001. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar homes in Southwell with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 collected per annum. The lease ran out in 2080. Having 54 years left we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including fees.
In 2011 we were approached by Mr and Mrs. O Bailey who, having completed a newly refurbished apartment in Southwell in January 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical flats in Southwell with an extended lease were worth £227,800. The average ground rent payable was £45 invoiced quarterly. The lease elapsed on 1 July 2091. Given that there were 65 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.