Williton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Williton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Williton you should see if your lease has between seventy and 90 years remaining. There are good reasons why a Williton flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Williton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Milo was the the leasehold owner of a conversion flat in Williton being sold with a lease of just over 61 years left. Milo informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Milo to exercise his statutory right. Milo procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were called by Dr Benjamin González who, having purchased a ground floor flat in Williton in September 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Similar flats in Williton with an extended lease were worth £168,800. The average ground rent payable was £60 invoiced quarterly. The lease finished on 15 August 2080. Taking into account 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
Last Winter we were contacted by Mr and Mrs. A Martin , who took over the lease of a basement flat in Williton in September 2012. The question was if we could approximate the price would be to prolong the lease by 90 years. Identical homes in Williton with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 collected per annum. The lease ran out on 20 October 2091. Having 66 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.