With a residential leasehold property in Witham, you are actually buying 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 lengthy period of time, you should 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 more expensive notably once there are less than 80 years remaining. Residents in Witham with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has less than 80 years left, under the current legislation the freeholder can calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Witham with over 100 years remaining 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 circumstances there is often little to be gained by buying 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 freeholder in Witham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Witham valuers.
Off the back of unsuccessful correspondence with the landlord of her purpose-built flat in Witham, Daisy commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was finalised in June 2010. The freeholder’s fees were restricted to a tad over 650 GBP.
Mr Caleb Simon purchased a purpose-built apartment in Witham in April 2003. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Witham with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 billed monthly. The lease lapsed on 25 June 2091. Having 65 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
In 2010 we were called by Mr Joshua Johnson who, having moved into a ground floor flat in Witham in September 2003. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Witham with an extended lease were worth £275,000. The average amount of ground rent was £55 collected yearly. The lease came to a finish in 2102. Given that there were 76 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.