With a domestic leasehold premises in Weldon, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Weldon with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below eighty years remaining, under the relevant legislation the landlord can calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Weldon,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Weldon valuers.
Last year Jackson, came perilously close to the 80-year mark with the lease on his ground floor flat in Weldon. In buying his property two decades ago, the lease term was of no bearing. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Jackson extended the lease just in the nick of time last September. Jackson and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If he not met the deadline, the sum would have become more costly by a minimum £1,125.
In 2009 we were approached by Ms Jasmine Simon who, having completed a ground floor apartment in Weldon in May 2007. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative homes in Weldon with 100 year plus lease were valued about £256,600. The average ground rent payable was £60 invoiced monthly. The lease expired on 19 February 2078. Having 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £41,800 and £48,400 exclusive of expenses.
In 2011 we were phoned by Mrs F King who, having took over the lease of a one bedroom apartment in Weldon in January 2007. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Weldon with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease end date was on 17 April 2089. Considering the 63 years unexpired we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including fees.