Southgate leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Southgate residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Southgate you would be well advised to see if your lease has between 70 and ninety years left. There are good reasons why a Southgate flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over 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 unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Southgate can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience 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.
14 months ago Gabriel, came critically close to the eighty-year mark with the lease on his basement flat in Southgate. In buying his home 19 years ago, the unexpired term was of little relevance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Gabriel arranged for a lease extension at the eleventh hour in July. Gabriel and the landlord in the end agreed on the final figure of £6,000 . If he failed to meet the deadline, the amount would have gone up by at least £1,150.
In 2009 we were contacted by Mr Omar Smith who, having moved into a first floor apartment in Southgate in May 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical properties in Southgate with a long lease were in the region of £223,400. The average amount of ground rent was £60 collected yearly. The lease expired on 15 August 2084. Taking into account 59 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 plus expenses.
An example of a Freehold Enfranchisement case 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 affected 2 flats. The number of years remaining on the existing lease(s) was 70.31 years.