There is no doubt about it a leasehold flat or house in Weldon is a wasting asset as a result of the shortening lease. If the lease has, over 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Weldon will qualify for this right; that being said a conveyancer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
The lawyers that we work with undertake Weldon 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 conveyancing solicitor we work with provide it.
Isaac was the the leasehold proprietor of a studio flat in Weldon being marketed with a lease of a few days over fifty eight years outstanding. Isaac informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Ms E Petit owned a newly refurbished apartment in Weldon in March 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Weldon with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 billed every twelve months. The lease concluded in 2079. Taking into account 53 years outstanding we approximated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus costs.
Dr B Williams took over the lease of a first floor apartment in Weldon in November 1999. We are asked if we could approximate the premium would be to extend the lease by 90 years. Identical homes in Weldon with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 invoiced quarterly. The lease terminated in 2090. Having 64 years remaining we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of costs.