When it comes to long leasehold property in Witham, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years left. Anyone in Witham with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has fewer than eighty years left, under the current statute the freeholder can calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Witham,the lease extension lawyers that we work with will always be happy 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 Alfie, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Witham. In buying his property twenty years ago, the length of the lease was of little interest. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Alfie was able to extend his lease just ahead of time last April. Alfie and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,075.
Mr Dexter André owned a one bedroom flat in Witham in October 2004. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative homes in Witham with a long lease were valued around £193,400. The average ground rent payable was £65 collected per annum. The lease ran out on 3 April 2085. Given that there were 59 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.
In 2011 we were e-mailed by Mr and Mrs. V Roux who, having owned a basement apartment in Witham in January 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Witham with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed annually. The lease finished in 2096. Considering the 70 years outstanding we estimated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 not including legals.