As the length of the unexpired term of a Witham residential lease diminished so does its value and therefore the value of your property. If the lease has, beyond one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty 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 logic behind why you should extend the lease without delay. Most flat owners in Witham will qualify for this right; that being said a conveyancer will be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Witham can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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 in-depth market knowledge dealing with Witham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the freeholder of her ground floor flat in Witham, Megan started the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The legal work was concluded in March 2013. The landlord’s fees were kept to an absolute minimum.
In 2010 we were contacted by Mrs L Ward who, having bought a studio apartment in Witham in February 1998. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical properties in Witham with an extended lease were worth £225,400. The mid-range ground rent payable was £45 billed annually. The lease termination date was in 2089. Taking into account 64 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.
Mr and Mrs. U King owned a garden flat in Witham in May 1999. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparative flats in Witham with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed on 25 November 2100. Having 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.