It’s a harsh certainty that a Williton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Williton property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be payable. Most flat owners in Williton will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Twenty four months ago Jason, started to get close to the eighty-year threshold with the lease on his first floor flat in Williton. Having bought his home twenty years previously, the length of the lease was of minimal importance. Thankfully, he recognised he would imminently be paying an inflated amount for Extending the lease. Jason was able to extend his lease just in the nick of time last August. Jason and the freeholder subsequently settled on a premium of £5,500 . If the lease had dropped to less than 80 years, the price would have escalated by a minimum £1,125.
Last year we were called by Mr Tyler Moreau , who owned a ground floor apartment in Williton in November 2010. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative flats in Williton with a long lease were in the region of £270,000. The average amount of ground rent was £55 collected quarterly. The lease elapsed in 2102. Taking into account 76 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Mrs Caitlin Martin owned a one bedroom flat in Williton in October 2007. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Williton with a long lease were valued around £173,800. The average amount of ground rent was £65 collected yearly. The lease concluded on 25 October 2081. Given that there were 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.