The only way is down when it comes to Southall lease terms. Southall properties that have a remaining term lower than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold properties in Southall with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Southall,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 Southall valuers.
After protracted negotiations with the freeholder of her ground floor apartment in Southall, Victoria commenced the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction was concluded in September 2014. The freeholder’s costs were restricted to approximately 500 GBP.
Mrs Abigail Patel bought a first floor flat in Southall in January 2000. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar flats in Southall with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £45 billed per annum. The lease expired in 2100. Given that there were 74 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Southall premises is 33 Barbican Road in January 2013. The Tribunals calculation of the lease extension premium payable was £17,592. This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 55.12 years.