The nearer a residential lease in Witney gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Witney will qualify for this right; however a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure Witney lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In recent months Jonathan, came critically near to the eighty-year mark with the lease on his studio apartment in Witney. In buying his flat two decades ago, the length of the lease was of minimal relevance. As luck would have it, he realised he needed to take steps soon on a lease extension. Jonathan was able to extend his lease just in the nick of time in May. Jonathan and the freeholder eventually agreed on the final figure of £5,500 . If he not met the deadline, the amount would have increased by at least £1,050.
In 2012 we were called by Mr and Mrs. J Cook who, having acquired a one bedroom apartment in Witney in August 2012. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparable residencies in Witney with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease concluded on 26 July 2098. Having 73 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last Christmas we were contacted by Dr O Harris , who owned a recently refurbished flat in Witney in October 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar premises in Witney with an extended lease were worth £235,600. The mid-range ground rent payable was £60 billed per annum. The lease lapsed on 18 February 2087. Taking into account 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of legals.