When it comes to residential leasehold premises in Williton, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years remaining. Residents in Williton with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. Once a lease has under eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Williton with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Williton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Williton valuers.
In recent months Aarav, came very close to the eighty-year threshold with the lease on his first floor apartment in Williton. Having purchased his home 19 years ago, the length of the lease was of minimal importance. Luckily, he noticed he needed to take steps soon on a lease extension. Aarav extended the lease just ahead of time in May. Aarav and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If he not met the deadline, the figure would have increased by a minimum £1,050.
Mr and Mrs. N García took over the lease of a one bedroom flat in Williton in January 2005. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Williton with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 collected quarterly. The lease terminated in 2075. Considering the 50 years outstanding we calculated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of costs.
Last Spring we were contacted by Mr and Mrs. H Morgan , who moved into a newly refurbished apartment in Williton in November 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar properties in Williton with 100 year plus lease were in the region of £203,200. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed in 2086. Taking into account 61 years outstanding we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including expenses.