Wells Next The Sea leases on residential properties are gradually decreasing in 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 Wells Next The Sea tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Wells Next The Sea you should see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Wells Next The Sea leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of 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 residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Wells Next The Sea leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Charlie owned a 2 bedroom flat in Wells Next The Sea on the market with a lease of fraction over 59 years unexpired. Charlie informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr T Bell acquired a basement apartment in Wells Next The Sea in October 1999. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative properties in Wells Next The Sea with an extended lease were in the region of £205,000. The average amount of ground rent was £50 billed annually. The lease finished in 2104. Having 79 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
In 2009 we were e-mailed by Ms G Lambert who, having purchased a purpose-built apartment in Wells Next The Sea in June 1996. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparable homes in Wells Next The Sea with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease lapsed on 21 February 2093. Having 68 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.