Somersham leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% 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 extra value that a lease extension will add to the property. Leasehold owners in Somersham will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Somersham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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.
Last Winter David, came dangerously close to the 80-year threshold with the lease on his ground floor apartment in Somersham. In buying his home two decades ago, the length of the lease was of no interest. by good luck, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. David extended the lease at the eleventh hour in September. David and the freeholder via the management company in the end settled on an amount of £5,500 . If he had missed the deadline, the premium would have escalated by at least £1,025.
Last Winter we were called by Mrs Chelsea Dupont , who moved into a one bedroom apartment in Somersham in April 1996. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Similar residencies in Somersham with a long lease were valued about £213,600. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed on 1 November 2083. Given that there were 57 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including fees.
In 2010 we were contacted by Mr and Mrs. M King who, having took over the lease of a ground floor apartment in Somersham in November 2002. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Somersham with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed annually. The lease finished on 11 May 2103. Having 77 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.