Unfortunately that a Wootton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Wootton property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to 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 The majority of flat owners in Wootton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Wootton with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Wootton,the lease extension experts 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 valuers.
In the wake of 6 months of unsuccessful negotiations with the landlord of her two bedroom apartment in Wootton, Courtney started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The legal work completed in June 2010. The landlord’s costs were restricted to about 550 pounds.
In 2009 we were approached by Mr and Mrs. U Robinson who, having bought a ground floor flat in Wootton in May 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable properties in Wootton with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease elapsed in 2094. Having 68 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Last April we were contacted by Mr and Mrs. J Campbell , who completed a first floor flat in Wootton in August 2002. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical residencies in Wootton with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired on 11 June 2105. Having 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.