Wootton Bassett leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Wootton Bassett residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wootton Bassett you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Wootton Bassett 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 lawyer we work with provide it.
Following unsuccessful negotiations with the landlord of her garden apartment in Wootton Bassett, Jordan initiated the lease extension process just as her lease was nearing the all-important eighty-year deadline. The transaction was finalised in January 2007. The freeholder’s costs were restricted to a tad over 650 GBP.
Last year we were phoned by Dr C Taylor , who completed a one bedroom apartment in Wootton Bassett in May 2002. The question was if we could estimate the price could be to prolong the lease by an additional years. Similar premises in Wootton Bassett with a long lease were valued around £285,000. The mid-range ground rent payable was £45 billed yearly. The lease ran out in 2097. Taking into account 72 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
In 2014 we were e-mailed by Mr and Mrs. N Martinez who, having took over the lease of a purpose-built flat in Wootton Bassett in July 2002. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative homes in Wootton Bassett with a long lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ended in 2086. Having 61 years left we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of legals.