There is no doubt about it a leasehold flat or house in Welton is a wasting asset as a result of the diminishing lease term. If the residual term has, more than one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Welton will qualify for this right; nevertheless a conveyancer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Welton with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers 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 lawyer we work with provide it.
Tyler owned a conversion apartment in Welton on the market with a lease of fraction over 61 years left. Tyler informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tyler to exercise his statutory right. Tyler obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
In 2009 we were approached by Mr and Mrs. S Stewart who, having purchased a one bedroom flat in Welton in January 2008. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable flats in Welton with 100 year plus lease were valued around £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease expired in 2098. Considering the 72 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2014 we were contacted by Mr and Mrs. A Moore who, having moved into a studio flat in Welton in August 1995. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical residencies in Welton with an extended lease were valued about £256,600. The mid-range ground rent payable was £60 billed per annum. The lease elapsed on 12 March 2078. Having 52 years outstanding we calculated the compensation to the landlord for the lease extension to be between £41,800 and £48,400 plus professional charges.