Unfortunately that a Welwyn Garden City residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Welwyn Garden City property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying 50% 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 The majority of flat owners in Welwyn Garden City will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Welwyn Garden City with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Halifax | |
| The Mortgage Works | |
| Virgin |
The conveyancers that we work with undertake Welwyn Garden City 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 conveyancer we work with provide it.
After protracted discussions with the landlord of her studio apartment in Welwyn Garden City, Yasmin commenced the lease extension process as the 80 year threshold was fast approaching. The transaction was concluded in April 2015. The freeholder’s costs were restricted to a tad over 650 pounds.
Last Spring we were approach by Dr U Brooks , who was assigned a lease of a one bedroom apartment in Welwyn Garden City in March 2000. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparable properties in Welwyn Garden City with an extended lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease end date was on 14 May 2105. Taking into account 79 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
In 2010 we were approached by Ms Georgia Taylor who, having owned a first floor flat in Welwyn Garden City in September 2010. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Welwyn Garden City with an extended lease were in the region of £193,400. The average ground rent payable was £65 billed quarterly. The lease elapsed on 12 January 2085. Considering the 59 years remaining we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.