Welton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Welton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Welton you must investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Welton with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Welton can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Welton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn owned a 2 bedroom flat in Welton on the market with a lease of fraction over 59 years outstanding. Finn informally spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Dr R Rivera owned a one bedroom flat in Welton in April 2001. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative flats in Welton with 100 year plus lease were in the region of £245,000. The average amount of ground rent was £45 billed yearly. The lease concluded on 16 September 2094. Taking into account 68 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2011 we were phoned by Mr and Mrs. V Bell who, having acquired a first floor apartment in Welton in September 2008. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative homes in Welton with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ended on 14 March 2105. Considering the 79 years unexpired we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.