Unfortunately that a Wootton Bridge residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Wootton Bridge property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Wootton Bridge will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Wootton Bridge with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Wootton Bridge,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wootton Bridge valuers.
Liam owned a 2 bedroom flat in Wootton Bridge on the market with a lease of just over fifty eight years left. Liam on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Liam to invoke his statutory right. Liam obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Dr Nathan Martin acquired a basement apartment in Wootton Bridge in May 2008. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Comparable premises in Wootton Bridge with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease ran out on 15 April 2104. Considering the 79 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
Last Christmas we were phoned by Dr Amelia Wood , who was assigned a lease of a newly refurbished apartment in Wootton Bridge in August 2010. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar properties in Wootton Bridge with a long lease were valued about £193,400. The mid-range ground rent payable was £65 collected annually. The lease lapsed on 17 April 2084. Taking into account 59 years left we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including professional charges.