The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Witham have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Witham lease extension. Shelving that expense today simply escalates the price you will ultimately be required to pay for a lease extension.
Leasehold premises in Witham with over 100 years unexpired 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 situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
Lender | Requirement |
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Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
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. |
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. |
Irrespective of whether you are a tenant or a landlord in Witham,the lease extension experts that we work with will always be prepared 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.
Last Summer Stanley, started to get close to the eighty-year mark with the lease on his purpose- built flat in Witham. In buying his home two decades ago, the unexpired term was of minimal importance. by good luck, he became aware that he needed to take action soon on Extending the lease. Stanley extended the lease just under the wire last May. Stanley and the landlord subsequently settled on an amount of £5,500 . If the lease had slid lower than 80 years, the sum would have gone up by a minimum £850.
In 2009 we were approached by Dr Mollie Campbell who, having purchased a one bedroom flat in Witham in November 2006. The question was if we could approximate the price would likely be to extend the lease by an additional years. Identical premises in Witham with 100 year plus lease were valued about £250,000. The average amount of ground rent was £50 billed per annum. The lease ended in 2093. Taking into account 69 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Mr Samuel James purchased a one bedroom apartment in Witham in April 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Witham with an extended lease were in the region of £290,000. The average ground rent payable was £60 invoiced quarterly. The lease expired on 16 July 2104. Considering the 80 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.