Wells Next The Sea residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | 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. |
Using our service gives you better 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 decide 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.
Aaron owned a 2 bedroom apartment in Wells Next The Sea on the market with a lease of a few days over 59 years left. Aaron informally approached his freeholder a well known London-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 new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Aaron to exercise his statutory right. Aaron procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Dr Rory Howard was assigned a lease of a purpose-built flat in Wells Next The Sea in June 2001. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar residencies in Wells Next The Sea with a long lease were valued about £225,800. The average amount of ground rent was £60 invoiced yearly. The lease terminated in 2086. Taking into account 60 years remaining we calculated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including costs.
Mr and Mrs. J David took over the lease of a basement apartment in Wells Next The Sea in May 2012. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative homes in Wells Next The Sea with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 billed yearly. The lease terminated in 2106. Given that there were 80 years left we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.