South Woodham Ferrers leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in South Woodham Ferrers will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
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 terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kyle owned a conversion flat in South Woodham Ferrers on the market with a lease of a little over 72 years remaining. Kyle on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last Winter we were called by Mr and Mrs. S Ali , who moved into a first floor apartment in South Woodham Ferrers in August 2004. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in South Woodham Ferrers with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected yearly. The lease ended in 2092. Considering the 66 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
Mr L Jackson was assigned a lease of a recently refurbished flat in South Woodham Ferrers in February 2010. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Comparative homes in South Woodham Ferrers with 100 year plus lease were valued about £280,000. The average amount of ground rent was £55 collected annually. The lease expired on 26 February 2103. Having 77 years outstanding we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.