When it comes to residential leasehold property in Somersham, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years remaining. Leasehold owners in Somersham with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has below eighty years outstanding, under the current legislation the landlord can calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Somersham with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
In recent months Logan, came critically close to the eighty-year mark with the lease on his leasehold apartment in Somersham. Having purchased his property twenty years ago, the length of the lease was of no interest. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Logan was able to extend his lease just in the nick of time last September. Logan and the freeholder eventually settled on the final figure of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,025.
Mr and Mrs. N Phillips was assigned a lease of a studio apartment in Somersham in September 1997. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Similar premises in Somersham with a long lease were worth £290,000. The average amount of ground rent was £45 collected monthly. The lease concluded in 2098. Having 72 years outstanding we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of expenses.
In 2011 we were contacted by Ms C King who, having took over the lease of a purpose-built apartment in Somersham in September 1999. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical flats in Somersham with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 invoiced monthly. The lease concluded on 28 June 2087. Considering the 61 years as a residual term we estimated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus professional charges.