Chances are that if you own a flat in Wells Next The Sea you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 marketable 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.
Ibrahim was the the leasehold owner of a high value apartment in Wells Next The Sea on the market with a lease of a few days over sixty years left. Ibrahim informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2014 we were approached by Mr Felix Phillips who, having took over the lease of a ground floor apartment in Wells Next The Sea in January 2010. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar premises in Wells Next The Sea with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 collected annually. The lease elapsed on 12 October 2091. Having 65 years unexpired we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of legals.
Last Spring we were e-mailed by Dr Oliver Rose , who took over the lease of a studio flat in Wells Next The Sea in July 2006. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparative residencies in Wells Next The Sea with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 invoiced monthly. The lease finished in 2080. Considering the 54 years left we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 plus legals.