Chances are that where you own a flat in Somersham you actually own a long leasehold interest over your property
Leasehold premises in Somersham with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Somersham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Somersham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aarav owned a 2 bedroom apartment in Somersham on the market with a lease of a few days over fifty eight years remaining. Aarav on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last year we were phoned by Mr and Mrs. N Alexander , who was assigned a lease of a ground floor apartment in Somersham in January 2005. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar properties in Somersham with an extended lease were worth £280,000. The average amount of ground rent was £45 billed per annum. The lease expired in 2094. Given that there were 70 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
Dr Rory Leroy moved into a one bedroom flat in Somersham in October 2001. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable premises in Somersham with a long lease were worth £223,400. The average amount of ground rent was £60 billed yearly. The lease concluded on 4 October 2083. Having 59 years remaining we approximated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of fees.