Why you should start your Welton lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Main reasons to start your Welton lease extension today:
</h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/welton">Welton</a> leasehold property depreciates with the years remaining on the lease.
</h4>
<p>
Welton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Welton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Welton you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value <h4>An extended lease is almost the same value as a freehold</h4>
<p>
Leasehold residencies in Welton with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it. <h4>Lenders may not issue a mortgage with a short lease</h4> Almost all banks and building societies will be unwilling to lend on a lease with less than 70 years remaining - although this varies from lender to lender. A purchaser will likely encounter difficulties in obtaining a mortgage and this could result in your Welton property being difficult to sell or refinance. <p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
</tr>
<tr>
<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
</tr>
<tr>
<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
</tr>
<tr>
<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
</tr>
</tbody>
</table>
</div>
</div>
<h4> Get in touch with one of our Welton lease extension solicitors or enfranchisement solicitors
</h4>
<p> Engaging our service gives you better control over the value of your Welton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell.
The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Welton Lease Extension Example Cases:
</h4>
<h5> Madeleine, Welton, East Yorkshire,</h5>
<p> Trailing protracted discussions with the freeholder of her purpose-built apartment in Welton, Madeleine started the lease extension process as the eighty year mark was quickly approaching. The lease extension was concluded in October 2013. The landlord’s fees were negotiated to about 450 GBP.
<h5>Welton case:</h5>
<p> Mr and Mrs. T Campbell took over the lease of a first floor apartment in Welton in November 2008. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable premises in Welton with an extended lease were worth £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease terminated on 19 October 2077. Considering the 51 years outstanding we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of professional charges.
<h5>Welton case:</h5>
<p>
Last Christmas we were approach by Dr Isabelle Clark , who
owned a purpose-built flat in Welton in August 2001. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative homes in Welton with an extended lease were valued about £210,600. The average amount of ground rent was £45 invoiced yearly. The lease finished in 2088. Considering the 62 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus legals.
</div>