As the the remaining lease term of a Witham residential lease diminished so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Witham will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Witham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Witham valuers.
Half a year ago George, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Witham. In buying his flat two decades ago, the length of the lease was of no interest. As luck would have it, he noticed he would imminently be paying an escalated premium for Extending the lease. George arranged for a lease extension just ahead of time in April. George and the freeholder via the managing agents eventually agreed on an amount of £6,000 . If the lease had fallen lower than eighty years, the amount would have increased by at least £1,000.
Ms Paige Turner took over the lease of a garden flat in Witham in June 2009. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical homes in Witham with a long lease were worth £275,000. The average amount of ground rent was £55 collected every twelve months. The lease terminated on 3 March 2101. Taking into account 76 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last Christmas we were e-mailed by Ms Courtney González , who completed a purpose-built flat in Witham in June 1997. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in Witham with an extended lease were valued around £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ended in 2081. Considering the 56 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus fees.