South Woodham Ferrers leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in South Woodham Ferrers will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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.
Off the back of unsuccessful discussions with the freeholder of her leasehold apartment in South Woodham Ferrers, Sarah initiated the lease extension process as the 80 year mark was quickly coming. The transaction was concluded in May 2008. The landlord’s costs were negotiated to slightly above 550 GBP.
Ms Georgina Peterson took over the lease of a newly refurbished flat in South Woodham Ferrers in October 2010. The dilemma was if we could estimate 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 £264,000. The average amount of ground rent was £60 collected every twelve months. The lease ran out in 2079. Having 53 years left we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including fees.
In 2010 we were called by Mr Callum Flores who, having completed a basement apartment in South Woodham Ferrers in June 2006. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar premises in South Woodham Ferrers with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed in 2090. Given that there were 64 years unexpired we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of fees.