With a long leasehold premises in Welton, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years left. Anyone in Welton with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has below eighty years left, under the relevant legislation the landlord can calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Welton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 9 months of unsuccessful negotiations with the landlord of her leasehold apartment in Welton, Hollie commenced the lease extension process just as the lease was coming close to the critical eighty-year mark. The transaction was finalised in October 2014. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were contacted by Dr Y Collins who, having was assigned a lease of a purpose-built flat in Welton in March 2005. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Identical homes in Welton with 100 year plus lease were in the region of £220,400. The mid-range ground rent payable was £45 invoiced monthly. The lease expired on 8 March 2090. Having 64 years remaining we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 plus legals.
Last Christmas we were e-mailed by Mr and Mrs. G Rivera , who purchased a one bedroom flat in Welton in September 2002. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Welton with a long lease were worth £270,000. The average amount of ground rent was £55 billed monthly. The lease ended on 22 April 2101. Considering the 75 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.