Wootton leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Wootton will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Wootton with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wootton valuers.
In recent months Owen, started to get near to the eighty-year mark with the lease on his leasehold apartment in Wootton. In buying his home two decades ago, the lease term was of no significance. Fortunately, he recognised he would imminently be paying an escalated premium for a lease extension. Owen was able to extend his lease at the eleventh hour in June. Owen and the landlord ultimately settled on an amount of £5,000 . If the lease had slid below 80 years, the sum would have become more costly by at least £1,125.
Mr and Mrs. W Simon took over the lease of a first floor apartment in Wootton in January 2006. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Wootton with an extended lease were worth £254,200. The average ground rent payable was £60 invoiced per annum. The lease came to a finish in 2077. Considering the 51 years unexpired we calculated the premium to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of expenses.
In 2010 we were phoned by Dr A Díaz who, having purchased a one bedroom flat in Wootton in August 2010. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Wootton with an extended lease were valued about £210,600. The average amount of ground rent was £45 invoiced quarterly. The lease terminated in 2088. Given that there were 62 years remaining we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including legals.