The value of Southwick leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years
Leasehold properties in Southwick with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Using our service gives you increased control over the value of your Southwick leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Aaron was the the leasehold proprietor of a 2 bedroom flat in Southwick being marketed with a lease of just over 59 years left. Aaron informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Mr and Mrs. L Nelson bought a garden apartment in Southwick in February 1999. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical flats in Southwick with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 billed yearly. The lease ended on 10 January 2087. Taking into account 62 years unexpired we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus professional charges.
Last August we were e-mailed by Dr Lewis François , who purchased a one bedroom apartment in Southwick in February 2000. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Similar premises in Southwick with a long lease were in the region of £265,000. The average amount of ground rent was £50 billed annually. The lease terminated on 21 September 2098. Given that there were 73 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.