On the balance of probabilities if you own a flat in Witham you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Witham can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Witham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the freeholder of her purpose-built apartment in Witham, Holly initiated the lease extension process as the 80 year threshold was swiftly nearing. The lease extension was finalised in November 2015. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were e-mailed by Dr Holly Bernard who, having purchased a basement flat in Witham in September 2005. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable properties in Witham with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 invoiced yearly. The lease finished on 18 April 2097. Taking into account 72 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Mr and Mrs. D Richardson owned a studio flat in Witham in June 2009. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Comparative flats in Witham with 100 year plus lease were in the region of £261,600. The average ground rent payable was £60 collected monthly. The lease concluded in 2077. Taking into account 52 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus fees.