It’s a harsh truth that a Welton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Welton property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. The majority of flat owners in Welton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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 |
| 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. |
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.
16 months ago Toby, came precariously close to the eighty-year threshold with the lease on his ground floor flat in Welton. In buying his flat two decades ago, the unexpired term was of little importance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Toby was able to extend his lease just in the nick of time in April. Toby and the freeholder subsequently settled on a premium of £6,000 . If the lease had descended lower than eighty years, the sum would have gone up by a minimum £875.
In 2013 we were approached by Mr P Lefèvre who, having owned a garden flat in Welton in May 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Welton with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expiry date was on 2 August 2088. Having 63 years unexpired we calculated the premium to the landlord for the lease extension to be within £17,100 and £19,800 plus fees.
Dr Sian Sánchez owned a ground floor flat in Welton in May 1999. The question was if we could approximate the premium would be for a ninety year extension to my lease. Identical homes in Welton with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed quarterly. The lease concluded in 2099. Given that there were 74 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.