Welton leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher amount will be due. Flat owners in Welton will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
|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.|
|Barclays plc|| Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).|
Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.
Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:
• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Chelsea 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.|
|Virgin||85 years at the time of completion. If it's less, we require it to be extended on or before completion.|
Lease extensions in Welton can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Welton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander owned a studio apartment in Welton being sold with a lease of just over sixty years outstanding. Alexander on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Alexander to exercise his statutory right. Alexander procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Mr Sam Sharif bought a studio flat in Welton in January 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Welton with an extended lease were valued about £265,000. The average amount of ground rent was £50 invoiced annually. The lease termination date was in 2096. Taking into account 73 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
Last month we were phoned by Ms J Fournier , who owned a purpose-built flat in Welton in October 2007. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar premises in Welton with a long lease were valued around £264,000. The mid-range amount of ground rent was £60 billed per annum. The lease ran out in 2076. Having 53 years remaining we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus fees.