Unfortunately that a South Woodham Ferrers residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the South Woodham Ferrers property prices.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 slips below eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in South Woodham Ferrers will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in South Woodham Ferrers with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in South Woodham Ferrers can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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.
Two years ago Jacob, started to get close to the eighty-year threshold with the lease on his ground floor flat in South Woodham Ferrers. In buying his property two decades ago, the length of the lease was of little relevance. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Jacob extended the lease just under the wire last March. Jacob and the landlord subsequently agreed on a premium of £6,000 . If he had missed the deadline, the figure would have become more costly by at least £1,000.
Mr and Mrs. M Reed acquired a basement apartment in South Woodham Ferrers in February 2009. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable homes in South Woodham Ferrers with a long lease were in the region of £275,000. The average amount of ground rent was £55 collected monthly. The lease concluded on 5 November 2101. Having 77 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
Last Christmas we were approach by Mr and Mrs. G André , who bought a one bedroom flat in South Woodham Ferrers in August 2001. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in South Woodham Ferrers with an extended lease were worth £183,600. The average ground rent payable was £65 invoiced per annum. The lease ran out in 2081. Taking into account 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.