Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Southgate. Clearly, the length of lease left reduces over time. This is often ignored and only becomes a problem when the residence has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Southgate have the right to extend the lease for a further ninety years under legislation. Do give due attention before putting off your Southgate lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold residencies in Southgate with more than 100 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Southgate,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Southgate valuers.
Matthew was the the leasehold owner of a studio apartment in Southgate on the market with a lease of fraction over fifty eight years left. Matthew informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew obtained expert advice and secured an acceptable deal without going to tribunal and sell the property.
Dr D Khan purchased a one bedroom flat in Southgate in July 2008. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Southgate with an extended lease were in the region of £240,600. The average ground rent payable was £65 collected every twelve months. The lease ran out on 27 January 2087. Having 62 years outstanding we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 2 flats. The unexpired lease term was 70.31 years.