The re-sale value of a leasehold property in Wotton under Edge is impacted by how long the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be finalised ahead of the eighty year threshold. Current legislation enables Wotton under Edge qualifying lessees to an additional term of 90 years over and above the unexpired term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Wotton under Edge with more than 100 years remaining 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Wotton under Edge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wotton under Edge valuers.
In the wake of eight months of lengthy correspondence with the freeholder of her studio flat in Wotton under Edge, Bethan started the lease extension process as the 80 year mark was quickly coming. The lease extension completed in September 2011. The landlord’s costs were kept to an absolute minimum.
Mr I Robinson moved into a purpose-built flat in Wotton under Edge in January 2011. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Wotton under Edge with a long lease were valued around £255,000. The average ground rent payable was £50 collected every twelve months. The lease concluded in 2097. Considering the 71 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Dr T Walker completed a ground floor apartment in Wotton under Edge in April 2002. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar premises in Wotton under Edge with an extended lease were worth £254,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed on 13 July 2077. Taking into account 51 years unexpired we estimated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of professional charges.