Welwyn Garden City leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Welwyn Garden City residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Welwyn Garden City you must check if your lease has between 70 and 90 years left. There are good reasons why a Welwyn Garden City leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Welwyn Garden City with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Welwyn Garden City can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Welwyn Garden City lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian was the the leasehold proprietor of a conversion flat in Welwyn Garden City on the market with a lease of just over 59 years left. Sebastian on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Last Winter we were approach by Mr Finn Brooks , who moved into a one bedroom apartment in Welwyn Garden City in February 2009. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Similar premises in Welwyn Garden City with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 billed quarterly. The lease finished in 2085. Considering the 59 years outstanding we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of legals.
In 2012 we were called by Ms I Green who, having took over the lease of a purpose-built flat in Welwyn Garden City in January 2002. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative residencies in Welwyn Garden City with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 billed monthly. The lease lapsed in 2096. Given that there were 70 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.