Unfortunately that a Welton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Welton property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Welton will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Welton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Welton valuers.
Subsequent to protracted negotiations with the freeholder of her leasehold apartment in Welton, Ellie started the lease extension process as the eighty year threshold was fast nearing. The transaction was finalised in June 2008. The landlord’s fees were kept to an absolute minimum.
Last year we were approach by Dr L Brooks , who was assigned a lease of a basement apartment in Welton in September 2000. The question was if we could approximate the premium could be for a 90 year extension to my lease. Similar homes in Welton with a long lease were worth £186,000. The average ground rent payable was £65 billed every twelve months. The lease ran out on 18 July 2084. Having 58 years outstanding we estimated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including fees.
Last July we were called by Mr Jude Bailey , who moved into a one bedroom flat in Welton in April 2005. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Identical premises in Welton with an extended lease were worth £250,000. The average amount of ground rent was £50 invoiced monthly. The lease terminated on 2 September 2095. Given that there were 69 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.