Wells Next The Sea leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. Leasehold owners in Wells Next The Sea will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Wells Next The Sea with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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. |
The lawyers that we work with handle Wells Next The Sea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Half a year ago Sebastian, came precariously near to the 80-year mark with the lease on his ground floor flat in Wells Next The Sea. In buying his flat 19 years ago, the unexpired term was of no bearing. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Sebastian was able to extend his lease at the eleventh hour in April. Sebastian and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had descended below 80 years, the figure would have become more costly by at least £900.
Dr Imogen Lefebvre purchased a one bedroom flat in Wells Next The Sea in May 2003. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Wells Next The Sea with an extended lease were valued around £174,200. The mid-range amount of ground rent was £55 billed monthly. The lease expired on 24 April 2076. Considering the 51 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.
Dr W Wilson moved into a one bedroom apartment in Wells Next The Sea in January 1995. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Wells Next The Sea with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease expiry date was on 16 June 2096. Given that there were 71 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.