With a long leasehold property in Soham, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Anyone in Soham with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below eighty years remaining, under the relevant Act the landlord can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Soham can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 procuring Soham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Callum was the the leasehold owner of a studio apartment in Soham on the market with a lease of just over fifty eight years remaining. Callum on an informal basis spoke with his landlord being a well known Bristol-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 £125 yearly. No ground rent would be due on a lease extension were Callum to invoke his statutory right. Callum procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Autumn we were phoned by Mrs Sarah Watson , who completed a studio apartment in Soham in July 2000. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical residencies in Soham with a long lease were worth £242,600. The mid-range amount of ground rent was £45 billed yearly. The lease concluded in 2092. Taking into account 67 years remaining we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus legals.
In 2010 we were approached by Dr Maisie Allen who, having completed a one bedroom apartment in Soham in May 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Soham with a long lease were worth £280,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ended on 7 April 2103. Taking into account 78 years unexpired we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.