When it comes to domestic leasehold property in Somersham, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years remaining. Anyone in Somersham with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has below 80 years outstanding, under the current legislation the landlord can calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Virgin |
Regardless of whether you are a tenant or a freeholder in Somersham,the lease extension lawyers 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.
Jack owned a high value apartment in Somersham being marketed with a lease of a few days over 59 years left. Jack informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2012 we were phoned by Mrs Sophia Miller who, having acquired a purpose-built flat in Somersham in October 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Somersham with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease expired in 2095. Taking into account 69 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.
Mrs P Fournier purchased a newly refurbished apartment in Somersham in November 2000. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Identical flats in Somersham with a long lease were worth £216,000. The mid-range ground rent payable was £60 billed monthly. The lease elapsed in 2084. Given that there were 58 years left we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.