Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Wootton. Inevitably, the length of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Wootton have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give careful attention before delaying your Wootton lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Wootton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wootton valuers.
Henry was the the leasehold proprietor of a conversion apartment in Wootton being sold with a lease of a little over 72 years remaining. Henry informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Henry to invoke his statutory right. Henry obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Summer we were approach by Mr Kian Turner , who moved into a ground floor apartment in Wootton in May 2000. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Wootton with a long lease were in the region of £166,400. The average ground rent payable was £60 collected annually. The lease came to a finish on 24 June 2079. Given that there were 54 years remaining we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including expenses.
Last month we were approach by Mr B Watson , who completed a basement flat in Wootton in February 2012. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Wootton with 100 year plus lease were in the region of £232,800. The mid-range ground rent payable was £45 invoiced quarterly. The lease elapsed on 7 November 2090. Taking into account 65 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.