Unfortunately that a Williton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Williton property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional 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 conveyancing solicitor 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 follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Williton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Williton valuers.
After protracted correspondence with the landlord of her ground floor flat in Williton, Alisha started the lease extension process just as the lease was approaching the crucial 80-year threshold. The transaction was concluded in January 2013. The landlord’s costs were restricted to about 500 GBP.
Last year we were approach by Dr L Hill , who owned a purpose-built flat in Williton in September 1997. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Similar premises in Williton with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed per annum. The lease ended in 2096. Considering the 70 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Dr Sophia David purchased a one bedroom apartment in Williton in July 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Williton with 100 year plus lease were valued about £246,800. The average amount of ground rent was £60 invoiced per annum. The lease ran out on 15 January 2076. Having 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 plus expenses.