As the length of the unexpired term of a Southall residential lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Southall will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Southall with over one hundred years left 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Southall leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her two bedroom flat in Southall, Olivia commenced the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction was concluded in January 2005. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Dr Seth Rodríguez , who completed a recently refurbished flat in Southall in March 2005. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Similar residencies in Southall with a long lease were worth £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease finished in 2096. Having 71 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
An example of a Lease Extension decision 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 unexpired term was 55.12 years.