South Woodham Ferrers residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold residencies in South Woodham Ferrers with in excess of one hundred 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your South Woodham Ferrers leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jason owned a high value flat in South Woodham Ferrers on the market with a lease of fraction over fifty eight years outstanding. Jason on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Jason to exercise his statutory right. Jason obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mr A Hill owned a studio flat in South Woodham Ferrers in February 1996. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable properties in South Woodham Ferrers with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 billed monthly. The lease finished on 4 April 2097. Considering the 72 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
In 2011 we were approached by Mr Y Rose who, having moved into a studio flat in South Woodham Ferrers in August 2011. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical premises in South Woodham Ferrers with a long lease were in the region of £261,600. The mid-range ground rent payable was £60 billed monthly. The lease terminated on 25 August 2077. Having 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 plus expenses.