Somersham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Somersham tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Somersham you must see if your lease has between seventy and ninety years left. There are compelling reasons why a Somersham leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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 | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Yorkshire 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. |
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 conveyancer we work with provide it.
Last year Zachary, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Somersham. In buying his home twenty years ago, the length of the lease was of minimal bearing. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Zachary arranged for a lease extension at the eleventh hour in March. Zachary and the freeholder via the management company subsequently settled on sum of £5,500 . If the lease had dropped to less than eighty years, the figure would have become more exhorbitant by at least £1,150.
In 2014 we were e-mailed by Mr Milo García who, having completed a garden flat in Somersham in March 1997. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Identical homes in Somersham with 100 year plus lease were valued about £265,200. The mid-range ground rent payable was £65 billed per annum. The lease ended on 24 February 2092. Having 66 years left we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus expenses.
Mr Reuben Bernard purchased a first floor flat in Somersham in October 2001. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical premises in Somersham with 100 year plus lease were worth £198,800. The average ground rent payable was £55 invoiced monthly. The lease finished on 14 March 2081. Considering the 55 years remaining we approximated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus costs.