Wootton Bridge leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Leasehold owners in Wootton Bridge will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The lawyers that we work with handle Wootton Bridge 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.
Adam was the the leasehold proprietor of a studio apartment in Wootton Bridge being marketed with a lease of just over 72 years outstanding. Adam informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Adam to invoke his statutory right. Adam procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr Y Jones owned a basement flat in Wootton Bridge in June 2011. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparative residencies in Wootton Bridge with 100 year plus lease were valued around £210,600. The mid-range amount of ground rent was £45 billed quarterly. The lease end date was in 2088. Considering the 62 years outstanding we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.
Last Winter we were approach by Dr M Thompson , who was assigned a lease of a one bedroom apartment in Wootton Bridge in January 2000. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Identical properties in Wootton Bridge with an extended lease were valued about £265,000. The mid-range ground rent payable was £50 invoiced yearly. The lease expired in 2099. Having 73 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.