Unfortunately that a Witham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Witham property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Witham will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Witham with more than one hundred years left on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Santander | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers that we work with handle Witham 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.
Caleb was the the leasehold proprietor of a 2 bedroom apartment in Witham being sold with a lease of fraction over fifty eight years left. Caleb on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Dr K Clarke completed a first floor apartment in Witham in March 2010. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical homes in Witham with an extended lease were in the region of £275,000. The average ground rent payable was £55 invoiced yearly. The lease ran out in 2103. Taking into account 77 years unexpired we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.
Mr and Mrs. M Nelson bought a garden apartment in Witham in June 2000. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative homes in Witham with an extended lease were worth £183,600. The average amount of ground rent was £65 billed annually. The lease terminated in 2083. Having 57 years unexpired we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.