As the the remaining lease term of a Witney residential lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in Witney will qualify for this right; nevertheless a conveyancer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than 100 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 many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Witney can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
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 a wealth of experience procuring Witney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Alex, started to get close to the 80-year mark with the lease on his basement apartment in Witney. Having bought his home 18 years previously, the length of the lease was of no significance. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Alex arranged for a lease extension at the eleventh hour last April. Alex and the landlord who owned the flat above in the end settled on an amount of £5,500 . If the lease had dipped below 80 years, the amount would have escalated by a minimum £1,000.
Last year we were approach by Dr P Scott , who bought a one bedroom flat in Witney in July 2012. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical flats in Witney with a long lease were worth £270,000. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed on 4 October 2093. Considering the 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
In 2014 we were approached by Dr M Martínez who, having was assigned a lease of a first floor apartment in Witney in August 2010. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparable residencies in Witney with a long lease were in the region of £208,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease terminated in 2082. Having 57 years remaining we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.