Southwick leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Southwick enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Southwick you should check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Southwick leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Southwick with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Southwick,the lease extension lawyers that we work with will always be willing 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.
Following unsuccessful negotiations with the landlord of her basement apartment in Southwick, Stephanie commenced the lease extension process just as her lease was approaching the all-important 80-year threshold. The legal work completed in July 2012. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were approach by Mr and Mrs. A Davis , who moved into a garden flat in Southwick in April 1995. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparable residencies in Southwick with an extended lease were in the region of £265,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed in 2099. Considering the 74 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
In 2009 we were called by Mr and Mrs. S Collins who, having owned a one bedroom flat in Southwick in February 1998. The question was if we could approximate the premium would be to prolong the lease by 90 years. Identical residencies in Southwick with a long lease were in the region of £166,400. The average amount of ground rent was £60 collected per annum. The lease came to a finish in 2079. Given that there were 54 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of legals.