Unfortunately that a South Woodham Ferrers residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the South Woodham Ferrers property market.Once your lease gets to 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 under eighty years - otherwise a higher amount will be due. Most flat owners in South Woodham Ferrers will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your South Woodham Ferrers leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the freeholder of her garden apartment in South Woodham Ferrers, Rhiannon initiated the lease extension process as the eighty year mark was rapidly advancing. The lease extension completed in February 2015. The landlord’s costs were kept to an absolute minimum.
Last August we were contacted by Mr and Mrs. S Gunderson , who moved into a garden apartment in South Woodham Ferrers in July 2000. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical properties in South Woodham Ferrers with a long lease were in the region of £191,000. The mid-range ground rent payable was £65 collected per annum. The lease lapsed in 2084. Taking into account 58 years unexpired we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus professional charges.
Mr and Mrs. G Richardson owned a one bedroom apartment in South Woodham Ferrers in May 2000. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar properties in South Woodham Ferrers with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 invoiced monthly. The lease terminated on 27 June 2095. Given that there were 69 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.