The re-sale value of a leasehold property in Witney is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded ahead of the 80 year cut off point. Leasehold Reform legislation enables Witney qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Witney with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Witney valuers.
In 2014 Nathan, started to get near to the eighty-year threshold with the lease on his leasehold flat in Witney. Having bought his flat two decades ago, the unexpired term was of little relevance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Nathan extended the lease just under the wire last June. Nathan and the landlord in the end settled on the final figure of £6,000 . If the lease had slid below 80 years, the amount would have increased by at least £975.
In 2013 we were e-mailed by Dr P Flores who, having bought a one bedroom flat in Witney in April 2004. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar properties in Witney with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease expiry date was on 7 April 2078. Considering the 52 years unexpired we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including professional charges.
In 2009 we were approached by Mr V Evans who, having purchased a one bedroom apartment in Witney in August 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Witney with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease expired on 9 October 2098. Considering the 72 years outstanding we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.