Witham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Witham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Witham you must investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Witham flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold properties in Witham with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Witham leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her one bedroom apartment in Witham, Freya commenced the lease extension process as the eighty year deadline was quickly nearing. The transaction was concluded in July 2013. The landlord’s fees were negotiated to below six hundred pounds.
Last August we were contacted by Mr U Bernard , who was assigned a lease of a garden flat in Witham in October 1995. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative properties in Witham with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £55 invoiced per annum. The lease expired on 25 July 2105. Considering the 79 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.
In 2014 we were approached by Dr Riley García who, having moved into a purpose-built apartment in Witham in October 1996. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar residencies in Witham with a long lease were valued about £193,400. The average ground rent payable was £65 billed per annum. The lease ended on 25 November 2085. Having 59 years left we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus costs.