Unfortunately that a Wootton Bassett residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Wootton Bassett property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Wootton Bassett will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Wootton Bassett can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Wootton Bassett lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel owned a high value flat in Wootton Bassett on the market with a lease of just over 72 years unexpired. Samuel on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Samuel to invoke his statutory right. Samuel procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2014 we were e-mailed by Mr Harry Mercier who, having acquired a studio flat in Wootton Bassett in May 2011. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Wootton Bassett with an extended lease were valued about £225,800. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish in 2085. Having 60 years remaining we approximated the compensation to the freeholder for the lease extension to be between £25,700 and £29,600 not including costs.
In 2012 we were contacted by Mrs V Brooks who, having acquired a one bedroom apartment in Wootton Bassett in August 2005. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Similar flats in Wootton Bassett with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 collected yearly. The lease lapsed on 17 August 2105. Taking into account 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.