Somerton leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease dips under eighty years - otherwise a higher amount will be payable. Leasehold owners in Somerton will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Somerton with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Somerton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Michael, started to get near to the eighty-year mark with the lease on his studio flat in Somerton. In buying his home 19 years ago, the lease term was of no bearing. As luck would have it, he realised he would imminently be paying way over the odds for a lease extension. Michael arranged for a lease extension at the eleventh hour last April. Michael and the landlord eventually agreed on the final figure of £5,500 . If the lease had descended to less than 80 years, the price would have increased by at least £950.
Last Christmas we were called by Mrs Rebecca Roberts , who was assigned a lease of a first floor apartment in Somerton in March 2009. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Comparative flats in Somerton with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 collected monthly. The lease finished in 2079. Considering the 54 years remaining we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of fees.
Last Christmas we were phoned by Mr and Mrs. T Edwards , who took over the lease of a garden apartment in Somerton in April 2004. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar homes in Somerton with 100 year plus lease were valued about £227,800. The mid-range amount of ground rent was £45 collected per annum. The lease came to a finish on 6 November 2090. Considering the 65 years left we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.