Willingham leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Flat owners in Willingham will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Willingham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Willingham valuers.
In 2014 Zachary, came dangerously close to the 80-year threshold with the lease on his two bedroom apartment in Willingham. Having purchased his home two decades ago, the unexpired term was of minimal importance. by good luck, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Zachary was able to extend his lease just under the wire in August. Zachary and the landlord in the end agreed on sum of £5,500 . If the lease had slipped below eighty years, the price would have become more costly by at least £1,000.
In 2012 we were contacted by Mr and Mrs. P Adams who, having took over the lease of a one bedroom apartment in Willingham in March 1996. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Willingham with 100 year plus lease were worth £198,800. The average ground rent payable was £55 collected yearly. The lease concluded on 26 January 2080. Having 55 years unexpired we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.
Last Spring we were phoned by Mr and Mrs. D Pérez , who completed a garden flat in Willingham in July 1995. We are asked if we could approximate the price would be to extend the lease by 90 years. Similar premises in Willingham with a long lease were in the region of £295,000. The average amount of ground rent was £50 invoiced per annum. The lease ran out in 2100. Given that there were 75 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.