It’s an underpublicised certainty that a South Woodham Ferrers residential lease is a deteriorating 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 depreciation being disguised by increases in the South Woodham Ferrers property prices.Where your lease has approximately 90 years left, you need to start considering 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 premium will be due. The majority of flat owners in South Woodham Ferrers will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in South Woodham Ferrers,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South Woodham Ferrers valuers.
Last October Arthur, started to get near to the eighty-year threshold with the lease on his garden flat in South Woodham Ferrers. In buying his property two decades ago, the unexpired term was of little relevance. Luckily, he recognised he needed to take action soon on Extending the lease. Arthur extended the lease just under the wire last May. Arthur and the landlord subsequently settled on the final figure of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £950.
Last Autumn we were e-mailed by Dr J Khan , who bought a newly refurbished flat in South Woodham Ferrers in September 2004. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in South Woodham Ferrers with a long lease were worth £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2096. Considering the 70 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Last Christmas we were phoned by Dr Naomi Morris , who bought a one bedroom flat in South Woodham Ferrers in April 1998. We are asked if we could approximate the premium would be to extend the lease by 90 years. Identical properties in South Woodham Ferrers with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease elapsed in 2076. Taking into account 50 years outstanding we calculated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of costs.