South Woodham Ferrers leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most South Woodham Ferrers tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in South Woodham Ferrers you should see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in South Woodham Ferrers can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience 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.
Arthur owned a high value apartment in South Woodham Ferrers on the market with a lease of just over 59 years remaining. Arthur on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Last August we were called by Dr F Norbert , who was assigned a lease of a ground floor flat in South Woodham Ferrers in June 1997. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical flats in South Woodham Ferrers with a long lease were in the region of £254,200. The average amount of ground rent was £60 collected per annum. The lease terminated on 1 June 2077. Having 51 years unexpired we calculated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 not including costs.
In 2010 we were called by Mr Eliot Turner who, having completed a studio apartment in South Woodham Ferrers in October 1996. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical residencies in South Woodham Ferrers with 100 year plus lease were in the region of £215,600. The mid-range ground rent payable was £45 billed yearly. The lease ran out in 2088. Having 62 years remaining we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus fees.