Chances are that where you own a flat in Southwell you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
The lawyers that we work with handle Southwell 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.
Michael owned a conversion flat in Southwell on the market with a lease of a little over sixty years outstanding. Michael informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to exercise his statutory right. Michael obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Mr Daniel White was assigned a lease of a newly refurbished flat in Southwell in February 2009. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Similar homes in Southwell with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 invoiced per annum. The lease expired on 18 April 2092. Taking into account 66 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
Mr and Mrs. Y Hill bought a one bedroom apartment in Southwell in March 2000. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable properties in Southwell with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease lapsed in 2103. Considering the 77 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.