The value of Southall leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is below than 80 years
Leasehold properties in Southall with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
The lawyers that we work with procure Southall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
18 months ago Leon, came seriously close to the 80-year threshold with the lease on his ground floor flat in Southall. In buying his property two decades ago, the unexpired term was of no relevance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Leon was able to extend his lease at the eleventh hour in April. Leon and the freeholder ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the price would have become more costly by at least £1,125.
Mr Max Williams took over the lease of a first floor apartment in Southall in January 2004. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable residencies in Southall with an extended lease were in the region of £191,400. The average ground rent payable was £55 billed per annum. The lease ended in 2080. Having 54 years remaining we estimated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of expenses.
An example of a Lease Extension case for a Southall residence is 33 Barbican Road in January 2013. The Tribunals calculation of the lease extension premium payable was £17,592. This case related to 1 flat. The unexpired residue of the current lease was 55.12 years.