Somersham leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Somersham will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Somersham with more than 100 years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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. |
Lease extensions in Somersham can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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 dealing with Somersham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Toby owned a conversion apartment in Somersham on the market with a lease of fraction over fifty eight years left. Toby on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr Arthur Morris took over the lease of a studio flat in Somersham in January 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparable properties in Somersham with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 collected per annum. The lease expired on 19 November 2104. Given that there were 79 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
In 2011 we were e-mailed by Mrs Abbie Davies who, having acquired a one bedroom apartment in Somersham in April 2003. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Identical properties in Somersham with a long lease were valued about £275,000. The mid-range ground rent payable was £65 invoiced annually. The lease terminated in 2093. Having 68 years remaining we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.