There is no doubt about it a leasehold property in Welton is a wasting asset as a result of the shortening lease. Where the lease has, beyond one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Welton will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Welton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Archie owned a conversion flat in Welton on the market with a lease of just over sixty years remaining. Archie informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Archie to invoke his statutory right. Archie procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Mr and Mrs. O Flores owned a garden flat in Welton in March 2006. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar residencies in Welton with an extended lease were worth £255,000. The average ground rent payable was £50 billed monthly. The lease elapsed in 2096. Considering the 71 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Mr H Díaz purchased a studio apartment in Welton in May 2009. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Welton with 100 year plus lease were valued around £254,200. The average amount of ground rent was £60 invoiced quarterly. The lease finished in 2076. Having 51 years remaining we estimated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of legals.