Weldon leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Weldon enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Weldon you really ought to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Weldon with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Chelsea 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Weldon can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
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 procuring Weldon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the landlord of her purpose-built flat in Weldon, Sophia commenced the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The legal work was concluded in August 2006. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Mr and Mrs. D Bell , who acquired a studio flat in Weldon in March 2002. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative premises in Weldon with 100 year plus lease were worth £203,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ended on 27 September 2086. Taking into account 61 years remaining we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of legals.
Mr and Mrs. G Sánchez took over the lease of a purpose-built apartment in Weldon in October 2006. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Identical residencies in Weldon with an extended lease were valued about £260,000. The mid-range amount of ground rent was £50 billed annually. The lease expiry date was on 14 September 2097. Given that there were 72 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.