Welton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most 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 seventy and 90 years remaining. There are good reasons why a Welton leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Welton with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
After lengthy discussions with the landlord of her leasehold flat in Welton, Sian initiated the lease extension process just as her lease was coming close to the crucial eighty-year mark. The legal work was finalised in August 2008. The landlord’s fees were kept to an absolute minimum.
In 2010 we were e-mailed by Mr and Mrs. R Johnson who, having completed a purpose-built apartment in Welton in June 1997. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical premises in Welton with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 billed quarterly. The lease elapsed in 2102. Considering the 76 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Last month we were e-mailed by Ms O Young , who bought a first floor flat in Welton in November 2000. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar flats in Welton with an extended lease were valued around £176,200. The average ground rent payable was £65 invoiced yearly. The lease expired on 23 August 2082. Given that there were 56 years left we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 not including legals.