There is no doubt about it a leasehold property in South Woodham Ferrers is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in South Woodham Ferrers will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you are eligible to extend your lease. In certain 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 conventional wisdom that a property with in excess of one hundred 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 unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with handle South Woodham Ferrers lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Matthew was the the leasehold owner of a conversion apartment in South Woodham Ferrers on the market with a lease of fraction over 61 years outstanding. Matthew informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last year we were phoned by Mrs Harriet Baker , who took over the lease of a one bedroom apartment in South Woodham Ferrers in May 2012. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical residencies in South Woodham Ferrers with 100 year plus lease were valued about £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 23 March 2095. Taking into account 71 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
Last Autumn we were called by Mr and Mrs. M Rose , who owned a ground floor apartment in South Woodham Ferrers in August 2001. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar flats in South Woodham Ferrers with an extended lease were worth £249,200. The average amount of ground rent was £60 billed monthly. The lease terminated on 5 July 2075. Having 51 years outstanding we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 plus fees.