Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Southport. Clearly, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Southport have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give due consideration before putting off your Southport lease extension. Putting off that expense now only increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Southport leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Cameron, came precariously close to the eighty-year mark with the lease on his first floor apartment in Southport. Having bought his flat two decades ago, the length of the lease was of no importance. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Cameron extended the lease at the eleventh hour in June. Cameron and the landlord in the end settled on the final figure of £6,000 . If he not met the deadline, the amount would have become more costly by at least £900.
In 2011 we were called by Mr and Mrs. N Moreau who, having completed a one bedroom flat in Southport in July 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative homes in Southport with a long lease were valued around £257,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease concluded in 2090. Considering the 65 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of expenses.
Last month we were e-mailed by Mr and Mrs. R Robinson , who owned a garden apartment in Southport in September 1995. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Identical properties in Southport with a long lease were valued about £196,400. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed in 2079. Taking into account 54 years remaining we calculated the premium to the freeholder to extend the lease to be within £35,200 and £40,600 exclusive of expenses.