The market value of a leasehold property in Witham is impacted by how long the lease has left to run. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded in advance of the eighty year mark. Statute enables Witham qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a nominal rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | 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:
|
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Witham can be a difficult process. We recommend you get professional help from a conveyancer 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 dealing with 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 lengthy negotiations with the freeholder of her studio apartment in Witham, Kate initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The lease extension completed in June 2006. The landlord’s fees were negotiated to about 550 GBP.
Dr Courtney Peterson completed a studio apartment in Witham in February 2001. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Identical homes in Witham with a long lease were worth £265,000. The average ground rent payable was £50 collected per annum. The lease ran out on 8 August 2099. Given that there were 73 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2014 we were contacted by Mr P Collins who, having moved into a one bedroom flat in Witham in February 1995. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative residencies in Witham with a long lease were in the region of £264,000. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed on 2 February 2079. Given that there were 53 years outstanding we estimated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of costs.