For those whose Witham flat is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold residencies in Witham with more than one hundred 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Witham can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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.
Off the back of lengthy correspondence with the freeholder of her first floor flat in Witham, Harriet started the lease extension process just as her lease was nearing the crucial 80-year threshold. The transaction was concluded in October 2011. The freeholder’s costs were restricted to less than 550 pounds.
Last year we were called by Mrs Georgia Collins , who took over the lease of a one bedroom flat in Witham in July 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Witham with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 collected annually. The lease ended on 5 November 2078. Having 53 years unexpired we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including fees.
Mr and Mrs. T Cox purchased a ground floor apartment in Witham in October 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Witham with a long lease were valued around £225,400. The mid-range ground rent payable was £45 invoiced per annum. The lease elapsed on 17 July 2089. Taking into account 64 years outstanding we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus expenses.