Unfortunately that a Welwyn Garden City residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Welwyn Garden City property prices.Once your lease gets to 85ish years, you need to 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 slips below eighty years - otherwise a higher premium will be due. The majority of flat owners in Welwyn Garden City will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Welwyn Garden City with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Following unsuccessful negotiations with the landlord of her two bedroom flat in Welwyn Garden City, Lucy initiated the lease extension process just as her lease was nearing the all-important 80-year mark. The transaction completed in August 2013. The freeholder’s costs were negotiated to slightly above 450 pounds.
Ms N Williams purchased a studio apartment in Welwyn Garden City in October 2001. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar flats in Welwyn Garden City with an extended lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease elapsed on 4 July 2100. Having 75 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
In 2010 we were called by Dr R Carter who, having moved into a basement flat in Welwyn Garden City in April 2008. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar homes in Welwyn Garden City with 100 year plus lease were in the region of £173,800. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish on 21 June 2080. Given that there were 55 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.