There is no doubt about it a leasehold property in Somersham is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner as opposed to later. Many flat owners in Somersham will qualify for this right; however a conveyancer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Somersham with in excess of 100 years outstanding on the lease are sometimes referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Somersham,the lease extension solicitors 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 Somersham valuers.
Lucas owned a conversion flat in Somersham being sold with a lease of a few days over sixty years remaining. Lucas informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Lucas to invoke his statutory right. Lucas procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last year we were approach by Dr K Dupont , who moved into a purpose-built apartment in Somersham in May 1998. The question was if we could estimate the price would likely be to extend the lease by an additional years. Comparative premises in Somersham with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed quarterly. The lease concluded on 6 July 2102. Given that there were 76 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Mr H Ricardo purchased a one bedroom flat in Somersham in September 2004. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Identical properties in Somersham with 100 year plus lease were worth £257,800. The average ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2091. Taking into account 65 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of legals.