There is no doubt about it a leasehold property in Somersham is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Somersham will qualify for this right; however a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Somersham with more than one hundred years remaining on the lease are often referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you increased control over the value of your Somersham leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her one bedroom flat in Somersham, Isabelle started the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work completed in May 2014. The freeholder’s costs were negotiated to slightly above five hundred GBP.
Dr Alicia Martínez was assigned a lease of a newly refurbished flat in Somersham in September 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar properties in Somersham with a long lease were valued about £257,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2091. Having 65 years remaining we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.
In 2010 we were contacted by Dr L Davies who, having took over the lease of a first floor apartment in Somersham in July 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparative residencies in Somersham with a long lease were valued about £196,400. The average amount of ground rent was £55 invoiced quarterly. The lease ran out in 2080. Considering the 54 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £35,200 and £40,600 exclusive of expenses.