The only way is down when it comes to Southgate lease terms. Southgate flats that have a residual term fewer than 80 years will reduce in market price at a rapid rate, and the cost to extend your lease will rise.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Southgate valuers.
After protracted negotiations with the landlord of her purpose-built flat in Southgate, Laura commenced the lease extension process as the eighty year threshold was rapidly approaching. The lease extension was concluded in August 2007. The landlord’s charges were negotiated to below 500 pounds.
Last Christmas we were approach by Dr R Morgan , who purchased a ground floor apartment in Southgate in May 2000. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar homes in Southgate with an extended lease were in the region of £200,000. The average amount of ground rent was £50 collected quarterly. The lease expired on 4 April 2103. Given that there were 77 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
An example of a Freehold Enfranchisement decision 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 related to 2 flats. The unexpired lease term was 70.31 years.