Welling leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Welling tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Welling you should investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Welling leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Welling,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Welling valuers.
After protracted negotiations with the freeholder of her basement apartment in Welling, Phoebe initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The legal work was concluded in May 2009. The freeholder’s fees were negotiated to less than 650 pounds.
Last Autumn we were approach by Mr and Mrs. R Howard , who was assigned a lease of a purpose-built apartment in Welling in August 1996. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable residencies in Welling with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected per annum. The lease expired in 2094. Taking into account 69 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
An example of a Lease Extension decision for a Welling premises is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.