With a domestic leasehold premises in Wootton, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are less than 80 years left. Anyone in Wootton with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has under 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Engaging our service will provide you better control over the value of your Wootton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her one bedroom flat in Wootton, Alicia commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The transaction was finalised in August 2008. The landlord’s fees were kept to an absolute minimum.
Mrs R Rivera completed a basement apartment in Wootton in March 1995. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparable properties in Wootton with 100 year plus lease were valued around £290,000. The mid-range amount of ground rent was £60 billed quarterly. The lease end date was in 2106. Having 80 years left we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.
Dr Caleb Smith purchased a purpose-built flat in Wootton in February 2000. The question was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical residencies in Wootton with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 billed annually. The lease finished on 13 June 2086. Having 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of legals.