The only way is down when it comes to Somersham lease terms. Somersham flats that have a lease term lower than 80 years will de-escalate in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold premises in Somersham with more than one hundred years outstanding 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Engaging our service will provide you enhanced 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Noah, came seriously close to the 80-year mark with the lease on his first floor apartment in Somersham. In buying his flat 19 years ago, the lease term was of no concern. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Noah was able to extend his lease just under the wire last January. Noah and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £1,100.
Last year we were called by Mr Zachary Roux , who acquired a basement apartment in Somersham in May 2004. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Identical premises in Somersham with 100 year plus lease were valued around £200,000. The average ground rent payable was £50 collected every twelve months. The lease finished in 2103. Given that there were 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
Ms H Gray bought a basement apartment in Somersham in July 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar flats in Somersham with 100 year plus lease were in the region of £265,200. The average ground rent payable was £65 billed per annum. The lease finished on 16 April 2092. Having 66 years unexpired we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 not including expenses.