It’s a harsh certainty that a South Woodham Ferrers residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the South Woodham Ferrers property prices.Once your lease nears 85ish years, you need to start thinking about 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 dips lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in South Woodham Ferrers will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in South Woodham Ferrers with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure South Woodham Ferrers 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 lawyer we work with provide it.
Joshua was the the leasehold proprietor of a high value apartment in South Woodham Ferrers being marketed with a lease of a little over sixty years outstanding. Joshua on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Christmas we were approach by Ms H Rogers , who bought a one bedroom apartment in South Woodham Ferrers in August 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in South Woodham Ferrers with a long lease were worth £246,800. The average amount of ground rent was £60 collected monthly. The lease terminated on 11 October 2076. Having 50 years remaining we calculated the premium to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of expenses.
Dr C Martin was assigned a lease of a one bedroom apartment in South Woodham Ferrers in April 2007. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar homes in South Woodham Ferrers with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 billed yearly. The lease terminated on 14 May 2087. Given that there were 61 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of legals.