South Woodham Ferrers leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in South Woodham Ferrers will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in South Woodham Ferrers with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify 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. |
| 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 | 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. |
| 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. |
Lease extensions in South Woodham Ferrers can be a difficult process. We recommend you get guidance from a conveyancer 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 South Woodham Ferrers lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon owned a 2 bedroom flat in South Woodham Ferrers on the market with a lease of a few days over sixty years outstanding. Leon on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert advice and secured an acceptable resolution informally and readily saleable.
In 2009 we were approached by Dr N Torres who, having acquired a one bedroom flat in South Woodham Ferrers in June 2004. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative premises in South Woodham Ferrers with 100 year plus lease were worth £270,000. The average ground rent payable was £55 billed monthly. The lease end date was in 2100. Considering the 75 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
In 2012 we were approached by Mr and Mrs. H James who, having moved into a first floor flat in South Woodham Ferrers in September 2010. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in South Woodham Ferrers with 100 year plus lease were worth £173,800. The average amount of ground rent was £65 billed yearly. The lease ended on 21 August 2080. Having 55 years remaining we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.