Welton leases on residential properties are gradually diminishing in 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. The majority of owners of residential leasehold property in Welton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Welton you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Welton with in excess of 100 years unexpired 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Welton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Welton valuers.
In the wake of 6 months of protracted negotiations with the freeholder of her basement apartment in Welton, Jodie initiated the lease extension process as the 80 year deadline was quickly advancing. The legal work was concluded in September 2013. The landlord’s fees were kept to an absolute minimum.
Last Winter we were e-mailed by Mrs Leah Norbert , who bought a recently refurbished apartment in Welton in April 2007. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar residencies in Welton with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease came to a finish in 2088. Given that there were 62 years unexpired we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus professional charges.
Dr R Gunderson was assigned a lease of a basement flat in Welton in June 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar flats in Welton with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease ran out on 5 July 2099. Given that there were 73 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.