On the balance of probabilities where you own a flat in Southgate you actually own a long leasehold interest over your property
Leasehold properties in Southgate with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Southgate can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Southgate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months James, came precariously close to the 80-year threshold with the lease on his purpose- built apartment in Southgate. Having purchased his home 19 years previously, the lease term was of little significance. Fortunately, he realised he needed to take steps soon on Extending the lease. James arranged for a lease extension just ahead of time in September. James and the freeholder ultimately settled on sum of £5,000 . If he failed to meet the deadline, the premium would have increased by at least £1,025.
Last Winter we were approach by Mr and Mrs. O Ramírez , who acquired a one bedroom flat in Southgate in October 2000. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical homes in Southgate with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 billed every twelve months. The lease elapsed on 23 April 2078. Taking into account 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.
An example of a Freehold Enfranchisement decision for a Southgate residence 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 remaining number of years on the lease was 70.31 years.