Unfortunately that a South Woodham Ferrers residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the South Woodham Ferrers property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. Most flat owners in South Woodham Ferrers will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you better control over the value of your South Woodham Ferrers leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kai owned a studio flat in South Woodham Ferrers being marketed with a lease of fraction over 72 years left. Kai informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Kai to invoke his statutory right. Kai obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
Mr and Mrs. N Watson moved into a studio apartment in South Woodham Ferrers in June 2009. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Identical homes in South Woodham Ferrers with an extended lease were valued around £264,000. The average ground rent payable was £60 billed yearly. The lease expired on 18 November 2078. Considering the 53 years unexpired we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including professional charges.
Mr and Mrs. R Dupont took over the lease of a first floor flat in South Woodham Ferrers in July 2009. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in South Woodham Ferrers with a long lease were in the region of £225,400. The average ground rent payable was £45 billed annually. The lease expired on 6 January 2089. Given that there were 64 years outstanding we approximated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 not including expenses.