Wells Next The Sea leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Wells Next The Sea enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wells Next The Sea you should check if your lease has between seventy and 90 years left. There are good reasons why a Wells Next The Sea leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
Leasehold residencies in Wells Next The Sea with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Wells Next The Sea,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 Wells Next The Sea valuers.
Last Winter Jude, came dangerously close to the eighty-year mark with the lease on his leasehold flat in Wells Next The Sea. In buying his flat two decades ago, the unexpired term was of little concern. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Jude was able to extend his lease just in the nick of time last January. Jude and the freeholder via the managing agents subsequently agreed on an amount of £6,000 . If he had missed the deadline, the price would have escalated by at least £1,150.
In 2011 we were called by Ms Alicia Vincent who, having completed a studio flat in Wells Next The Sea in June 1995. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Wells Next The Sea with a long lease were worth £290,000. The average amount of ground rent was £45 billed per annum. The lease ran out in 2098. Given that there were 72 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus fees.
In 2014 we were called by Mr Rory Harris who, having completed a one bedroom flat in Wells Next The Sea in February 2010. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Wells Next The Sea with a long lease were valued around £233,200. The mid-range ground rent payable was £60 collected per annum. The lease expired in 2087. Considering the 61 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus professional charges.