Top reasons for Southwick lease extension

Why you should start your Southwick lease extension today:

Increase your lease and increase your Southwick property value

Southwick leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Southwick tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Southwick you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not loan monies on a short lease

Lenders are making their criteria more stringent and a meaningful number now require flats to have a minimum of sixty if not seventy years remaining at the end of the mortgage. Given that plenty of flats in Southwick were built in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.

Get in touch with one of our Southwick lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you enhanced control over the value of your Southwick leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Southwick Lease Extension Example Cases:

Jonathan, Southwick, West Sussex

Last year Jonathan, came very near to the eighty-year threshold with the lease on his ground floor apartment in Southwick. In buying his property two decades ago, the length of the lease was of minimal interest. Thankfully, he realised he needed to take action soon on Extending the lease. Jonathan arranged for a lease extension at the eleventh hour last August. Jonathan and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If he had missed the deadline, the price would have increased by a minimum £1,075.

Southwick case:

Mrs R Clark bought a one bedroom apartment in Southwick in September 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar premises in Southwick with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed per annum. The lease termination date was on 20 April 2102. Having 76 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.

Southwick case:

In 2012 we were called by Mrs Katherine Carter who, having bought a basement flat in Southwick in April 2008. The question was if we could estimate the price would be to prolong the lease by an additional years. Identical residencies in Southwick with a long lease were worth £176,200. The average amount of ground rent was £65 billed yearly. The lease expired on 27 February 2082. Given that there were 56 years remaining we estimated the premium to the landlord to extend the lease to be within £29,500 and £34,000 plus professional charges.