Unfortunately that a Welwyn Garden City residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Welwyn Garden City property market.Where your lease has approximately 90 years left, you should start considering 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 falls under 80 years - otherwise a higher amount will be due. The majority of flat owners in Welwyn Garden City will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold premises in Welwyn Garden City with more than 100 years left 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Regardless of whether you are a tenant or a landlord in Welwyn Garden City,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Welwyn Garden City valuers.
In the wake of eight months of lengthy discussions with the landlord of her first floor apartment in Welwyn Garden City, Lily started the lease extension process just as the lease was approaching the crucial eighty-year threshold. The lease extension completed in November 2010. The freeholder’s charges were kept to an absolute minimum.
Last year we were phoned by Ms Ellen Ricardo , who moved into a first floor flat in Welwyn Garden City in April 2008. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative premises in Welwyn Garden City with a long lease were in the region of £225,400. The mid-range ground rent payable was £45 billed yearly. The lease elapsed on 25 August 2090. Having 64 years as a residual term we approximated the premium to the landlord for the lease extension to be within £16,200 and £18,600 not including expenses.
Last year we were approach by Mrs Olivia Díaz , who acquired a purpose-built flat in Welwyn Garden City in June 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable properties in Welwyn Garden City with a long lease were worth £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2101. Taking into account 75 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.