Unfortunately that a Williton residential lease is a wasting 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 reduction being disguised by increases in the Williton property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay 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 extra value that a lease extension will add the property The majority of leasehold owners in Williton will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Williton with more than 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Williton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie owned a conversion flat in Williton on the market with a lease of fraction over fifty eight years remaining. Ollie on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2009 we were approached by Ms U Bertrand who, having was assigned a lease of a newly refurbished apartment in Williton in November 2006. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Williton with 100 year plus lease were valued around £250,000. The average ground rent payable was £50 billed every twelve months. The lease ran out in 2095. Considering the 69 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
In 2011 we were contacted by Dr V Ward who, having moved into a basement apartment in Williton in July 2003. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical residencies in Williton with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease expiry date was in 2106. Considering the 80 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.