When it comes to residential leasehold premises in Southall, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Residents in Southall with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has below eighty years remaining, under the current Act the freeholder can calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Southall leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Thomas owned a conversion apartment in Southall being sold with a lease of a few days over fifty eight years unexpired. Thomas on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Thomas to invoke his statutory right. Thomas obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Mr and Mrs. A Stewart bought a one bedroom apartment in Southall in February 1995. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Southall with a long lease were worth £290,000. The mid-range amount of ground rent was £45 collected per annum. The lease came to a finish on 26 May 2098. Taking into account 73 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
An example of a Lease Extension matter before the tribunal for a Southall flat is 33 Barbican Road in January 2013. The Tribunals calculation of the lease extension premium payable was £17,592. This case affected 1 flat. The unexpired lease term was 55.12 years.