Main reasons to commence your Somersham lease extension

Main reasons to commence your Somersham lease extension today:

A Somersham leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Somersham depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded prior to the 80 year threshold. Leasehold Reform legislation entitles Somersham qualifying lessees to an additional term of ninety years in addition to the existing term, at a notional rent (zero ground rent). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Somersham with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders will not loan monies with a short lease

Mortgage lenders have set criteria when lending monies charged on leasehold property. Many will simply refrain from lending at all once an unexpired lease term slips below a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than seventy years as acceptable security. In addition to this being important when selling, it is also relevant where you are seeking to refinance your Somersham home.

What makes us experts in Somersham lease extensions?

Regardless of whether you are a tenant or a freeholder in Somersham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Somersham valuers.

Somersham Lease Extension Example Cases:

Georgina, Somersham, Cambridgeshire,

In the wake of 9 months of unsuccessful discussions with the freeholder of her purpose-built apartment in Somersham, Georgina commenced the lease extension process as the 80 year mark was swiftly nearing. The transaction completed in September 2005. The landlord’s costs were negotiated to less than 600 GBP.

Somersham case:

In 2012 we were approached by Mr and Mrs. Y Kelly who, having purchased a basement apartment in Somersham in February 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative residencies in Somersham with 100 year plus lease were worth £171,800. The average ground rent payable was £55 collected per annum. The lease concluded on 25 August 2076. Taking into account 50 years remaining we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of costs.

Somersham case:

In 2010 we were called by Mr and Mrs. J Lee who, having purchased a ground floor flat in Somersham in September 1998. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Somersham with a long lease were worth £280,000. The average amount of ground rent was £45 collected per annum. The lease terminated in 2096. Taking into account 70 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.