Stop! Your Lease Extension in Southgate Could Be FREE

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Many leaseholders in Southgate are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Southgate has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to start your Southgate lease extension

Top reasons for lease extension now:

Increase your lease and increase your Southgate property value

The value of Southgate leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is below than eighty years

An extended lease has roughly the same value as a freehold

Leasehold properties in Southgate with more than one hundred years unexpired on the lease are often 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 maintenance charges merit it.

Lending institutions may decide not to finance a property with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past mortgage companies would lend on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage.
Santander

If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest.

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.
 


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.

TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Get in touch with one of our Southgate lease extension solicitors or enfranchisement solicitors

Engaging our service gives you enhanced control over the value of your Southgate leasehold, as your property will be more valuable and saleable in respect of 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.

Southgate Lease Extension Example Cases:

Rory, Southgate, North London,

Rory was the the leasehold proprietor of a 2 bedroom flat in Southgate being sold with a lease of just over 72 years outstanding. Rory on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Rory to exercise his statutory right. Rory obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.

Southgate case:

In 2009 we were approached by Mr and Mrs. O White who, having purchased a one bedroom apartment in Southgate in April 1996. The question was if we could approximate the price would likely be to extend the lease by an additional years. Comparable homes in Southgate with 100 year plus lease were in the region of £218,400. The mid-range ground rent payable was £60 invoiced annually. The lease expired on 8 November 2085. Having 59 years left we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of fees.

Decision in Barnet

An example of a Freehold Enfranchisement matter before the tribunal for a Southgate premises is 23 Beaconsfield Road in July 2013. The Tribunals decided that the amount payable was £31,203 for the freehold. This case was in relation to 2 flats. The unexpired lease term was 70.31 years.