Southwick leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. Leasehold owners in Southwick will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some cases you may not qualify. There are also strict deadlines and steps to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Southwick,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Southwick valuers.
Jude was the the leasehold proprietor of a 2 bedroom apartment in Southwick being marketed with a lease of fraction over 72 years unexpired. Jude informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Jude to invoke his statutory right. Jude obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mr and Mrs. C Murphy completed a one bedroom apartment in Southwick in April 2005. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Similar properties in Southwick with a long lease were valued around £250,000. The average ground rent payable was £50 invoiced per annum. The lease finished on 26 July 2095. Having 69 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Last Summer we were phoned by Dr Liam Gray , who purchased a first floor apartment in Southwick in June 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Southwick with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish in 2106. Taking into account 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.