On the balance of probabilities where you own a flat in Witham you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Witham,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 in-depth market knowledge and the close ties they enjoy with Witham valuers.
Samuel was the the leasehold owner of a studio apartment in Witham on the market with a lease of just over 72 years outstanding. Samuel on an informal basis contacted his freeholder being a well known London-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 £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Mr and Mrs. O Rogers took over the lease of a garden flat in Witham in March 1996. We are asked if we could approximate the price could be to extend the lease by ninety years. Similar flats in Witham with a long lease were valued around £245,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished in 2089. Taking into account 68 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last Christmas we were contacted by Dr B Adams , who owned a first floor flat in Witham in August 2009. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Witham with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease finished in 2100. Having 79 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.