Witham leases on residential deteriorating in value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Witham will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Witham with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Witham,the lease extension solicitors that we work with will always be prepared 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.
Last Summer Jude, started to get close to the 80-year threshold with the lease on his leasehold flat in Witham. Having bought his flat 19 years previously, the lease term was of no relevance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Jude was able to extend his lease at the eleventh hour last July. Jude and the landlord eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the figure would have escalated by at least £1,025.
Last month we were phoned by Dr L González , who completed a studio flat in Witham in May 2010. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative properties in Witham with an extended lease were worth £208,200. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish in 2085. Given that there were 61 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.
Dr D Torres took over the lease of a recently refurbished apartment in Witham in March 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative homes in Witham with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish on 13 October 2096. Taking into account 72 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.