Somersham leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Flat owners in Somersham will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Somersham with in excess of one hundred years unexpired 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Regardless of whether you are a tenant or a freeholder in Somersham,the lease extension lawyers that we work with will always be prepared 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.
Eli was the the leasehold proprietor of a high value apartment in Somersham on the market with a lease of a few days over fifty eight years outstanding. Eli on an informal basis approached his landlord being a well known London-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 on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Eli to exercise his statutory right. Eli obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr M Turner bought a first floor flat in Somersham in October 2000. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative homes in Somersham with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease lapsed in 2099. Having 73 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Dr Ellie Nelson bought a studio apartment in Somersham in July 2005. We are asked if we could approximate the price could be for a ninety year lease extension. Similar residencies in Somersham with a long lease were worth £240,600. The average amount of ground rent was £65 invoiced annually. The lease elapsed in 2088. Given that there were 62 years remaining we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.