Southgate leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Southgate will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Southgate with over 100 years outstanding on the lease are often regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Southgate leasehold, as your property will be more valuable and marketable 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.
Off the back of unsuccessful negotiations with the landlord of her ground floor apartment in Southgate, Erin started the lease extension process as the 80 year deadline was quickly coming. The legal work was finalised in February 2007. The landlord’s charges were kept to an absolute minimum.
Last year we were called by Mr B Bernard , who acquired a purpose-built flat in Southgate in May 1998. We are asked if we could approximate the premium would be to extend the lease by ninety years. Similar flats in Southgate with a long lease were worth £267,600. The average ground rent payable was £65 collected annually. The lease lapsed in 2092. Given that there were 67 years left we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 plus expenses.
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.