There is no doubt about it a leasehold property in Somerton is a wasting asset as a result of the shortening lease. Where the lease has, more than 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Somerton will qualify for this right; however a conveyancer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Somerton can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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 dealing with Somerton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the freeholder of her leasehold flat in Somerton, Sian started the lease extension process as the 80 year mark was fast advancing. The transaction was finalised in June 2012. The landlord’s fees were kept to an absolute minimum.
Mr Oscar White completed a garden apartment in Somerton in April 2006. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Somerton with 100 year plus lease were in the region of £220,400. The average amount of ground rent was £45 billed per annum. The lease terminated in 2090. Taking into account 64 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of professional charges.
In 2014 we were e-mailed by Mr and Mrs. C Bell who, having completed a one bedroom apartment in Somerton in July 2007. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Somerton with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced monthly. The lease expiry date was on 23 January 2101. Considering the 75 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.