The nearer a domestic lease in Somersham gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Somersham will meet the qualifying criteria; nevertheless a conveyancer should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Somersham with more than 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with undertake Somersham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Sam was the the leasehold owner of a conversion apartment in Somersham on the market with a lease of a few days over 59 years left. Sam on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sam to invoke his statutory right. Sam procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last year we were approach by Mr and Mrs. N Campbell , who purchased a garden apartment in Somersham in June 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparable properties in Somersham with a long lease were in the region of £210,000. The average amount of ground rent was £50 billed monthly. The lease expiry date was in 2106. Given that there were 80 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
Mr and Mrs. F González owned a basement apartment in Somersham in April 2009. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar premises in Somersham with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish on 6 October 2095. Given that there were 69 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.