When it comes to residential leasehold premises in Welling, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years left. Anyone in Welling with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the current legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Welling,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 in-depth market knowledge and the close ties they enjoy with Welling valuers.
In the wake of 6 months of protracted discussions with the landlord of her ground floor apartment in Welling, Kate commenced the lease extension process as the eighty year threshold was rapidly coming. The lease extension completed in February 2005. The freeholder’s costs were negotiated to about 600 pounds.
Mr Samuel Garcia bought a one bedroom flat in Welling in April 2007. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable homes in Welling with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 billed quarterly. The lease ended on 20 February 2095. Given that there were 69 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension matter before the tribunal 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 was in relation to 1 flat.