Unfortunately that a Welling residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Welling property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Welling will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 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 |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| National Westminster Bank | 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. |
| 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. |
Using our service gives you enhanced control over the value of your Welling leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy discussions with the freeholder of her ground floor apartment in Welling, Grace initiated the lease extension process as the eighty year threshold was quickly advancing. The transaction was finalised in January 2007. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were contacted by Mrs Francesca González who, having was assigned a lease of a first floor apartment in Welling in November 2010. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Welling with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed monthly. The lease terminated on 3 February 2094. Considering the 71 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension case for a Welling flat 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.