Southwick leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Southwick enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Southwick you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Southwick with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Leeds Building Society | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
Lease extensions in Southwick can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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 a wealth of experience dealing with Southwick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Elijah owned a conversion flat in Southwick on the market with a lease of a few days over fifty eight years left. Elijah on an informal basis contacted his landlord being a well known Bristol-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 initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were called by Mr Jonathan Sánchez who, having bought a garden apartment in Southwick in November 1997. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Similar residencies in Southwick with an extended lease were worth £220,400. The mid-range ground rent payable was £45 invoiced annually. The lease expired on 26 April 2090. Having 64 years outstanding we approximated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of fees.
Ms Stephanie Reed acquired a ground floor apartment in Southwick in March 2010. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative flats in Southwick with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease expiry date was on 14 October 2101. Given that there were 75 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.