Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Wootton Bridge. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Wootton Bridge have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give careful deliberation before delaying your Wootton Bridge lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Wootton Bridge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Jacob, started to get close to the 80-year mark with the lease on his ground floor flat in Wootton Bridge. In buying his property two decades ago, the length of the lease was of minimal importance. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Jacob extended the lease at the eleventh hour in June. Jacob and the landlord who owned the flat above subsequently settled on sum of £5,000 . If he had missed the deadline, the price would have gone up by at least £900.
In 2012 we were e-mailed by Mr and Mrs. B Morris who, having completed a one bedroom flat in Wootton Bridge in May 2005. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Similar residencies in Wootton Bridge with 100 year plus lease were worth £168,800. The mid-range amount of ground rent was £60 billed yearly. The lease ran out on 15 August 2081. Considering the 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.
Last Spring we were called by Dr Harry Hill , who completed a recently refurbished flat in Wootton Bridge in March 1996. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar flats in Wootton Bridge with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expiry date was in 2092. Taking into account 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.