Witney leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Witney residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Witney you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Witney with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Witney,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 in-depth market knowledge and the close ties they enjoy with Witney valuers.
Last October Ben, came very near to the eighty-year threshold with the lease on his basement flat in Witney. In buying his property two decades ago, the lease term was of no significance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Ben extended the lease just ahead of time last July. Ben and the freeholder eventually settled on an amount of £5,500 . If he had missed the deadline, the sum would have increased by at least £850.
In 2013 we were e-mailed by Mr and Mrs. K Gómez who, having owned a purpose-built flat in Witney in April 2005. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparative flats in Witney with a long lease were valued about £210,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease finished on 27 February 2105. Taking into account 80 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
In 2011 we were phoned by Mr and Mrs. H Rogers who, having took over the lease of a ground floor apartment in Witney in November 2008. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable homes in Witney with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 billed every twelve months. The lease termination date was on 28 September 2094. Having 69 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.