Unfortunately that a Somersham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Somersham property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Somersham will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Somersham with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Somersham valuers.
During the course of the last few months Edward, came very near to the eighty-year threshold with the lease on his basement apartment in Somersham. In buying his flat 18 years previously, the lease term was of no significance. As luck would have it, he noticed he would imminently be paying way over the odds for Extending the lease. Edward was able to extend his lease at the eleventh hour in May. Edward and the landlord ultimately agreed on a premium of £6,000 . If he not met the deadline, the amount would have gone up by at least £1,025.
Last Winter we were approach by Mr and Mrs. P Adams , who bought a recently refurbished flat in Somersham in January 2009. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparative residencies in Somersham with 100 year plus lease were valued around £181,600. The average amount of ground rent was £55 invoiced quarterly. The lease concluded in 2078. Taking into account 52 years outstanding we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
Mr and Mrs. A Campbell was assigned a lease of a basement flat in Somersham in April 2008. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Somersham with a long lease were in the region of £290,000. The average ground rent payable was £45 billed yearly. The lease concluded in 2098. Having 72 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus costs.