Wootton Bridge leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Wootton Bridge will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Wootton Bridge with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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.
Last year Mason, started to get close to the eighty-year threshold with the lease on his garden apartment in Wootton Bridge. Having bought his home 19 years ago, the length of the lease was of no importance. As luck would have it, he realised he would imminently be paying an escalated premium for Extending the lease. Mason arranged for a lease extension at the eleventh hour last August. Mason and the landlord in the end agreed on a premium of £5,000 . If the lease had fallen below 80 years, the premium would have increased by at least £1,075.
Last Summer we were phoned by Dr Hannah Harris , who bought a basement flat in Wootton Bridge in July 1999. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Wootton Bridge with 100 year plus lease were valued about £260,000. The average amount of ground rent was £50 invoiced annually. The lease ended on 15 July 2097. Considering the 72 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Autumn we were e-mailed by Mr and Mrs. A Garcia , who took over the lease of a first floor apartment in Wootton Bridge in January 2006. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Identical flats in Wootton Bridge with an extended lease were worth £256,600. The average ground rent payable was £60 invoiced monthly. The lease lapsed in 2077. Given that there were 52 years remaining we calculated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of fees.