Southwold leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Southwold will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Southwold,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 Southwold valuers.
In recent months Harry, started to get close to the eighty-year mark with the lease on his garden apartment in Southwold. In buying his property twenty years previously, the unexpired term was of no interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Harry extended the lease just under the wire last March. Harry and the landlord eventually agreed on an amount of £5,000 . If the lease had slid to less than eighty years, the premium would have gone up by a minimum £1,125.
In 2009 we were called by Dr Lucas Bailey who, having completed a garden flat in Southwold in April 2008. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable premises in Southwold with a long lease were worth £181,600. The average ground rent payable was £55 invoiced annually. The lease elapsed on 18 October 2078. Taking into account 52 years remaining we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including costs.
Last Autumn we were phoned by Ms R Hernández , who owned a newly refurbished flat in Southwold in March 2010. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Southwold with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease came to a finish on 4 May 2098. Having 72 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus fees.