Somersham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Somersham tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Somersham you must investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold properties in Somersham with in excess of 100 years remaining on the lease are sometimes 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 buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Somersham can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 in-depth market knowledge 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.
Dexter owned a 2 bedroom apartment in Somersham on the market with a lease of just over sixty years outstanding. Dexter on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and secured satisfactory resolution informally and sell the property.
Last Christmas we were e-mailed by Dr Georgia Anderson , who owned a basement apartment in Somersham in August 2005. We are asked if we could approximate the price would be to prolong the lease by ninety years. Identical properties in Somersham with 100 year plus lease were in the region of £216,000. The average amount of ground rent was £60 billed monthly. The lease expiry date was on 11 March 2084. Taking into account 58 years remaining we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
In 2009 we were e-mailed by Dr O Bell who, having owned a studio apartment in Somersham in August 2008. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Identical residencies in Somersham with 100 year plus lease were valued around £205,000. The average ground rent payable was £50 collected monthly. The lease terminated in 2104. Given that there were 78 years left we estimated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 not including legals.