The re-sale value of a leasehold property in Wotton under Edge depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. Ideally one should start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised well before the eighty year mark. Current legislation entitles Wotton under Edge qualifying lessees to an additional term of ninety years on top of the existing term, at a notional rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent 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 many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Wotton under Edge can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Wotton under Edge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel was the the leasehold owner of a high value flat in Wotton under Edge on the market with a lease of just over 61 years unexpired. Daniel on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Daniel to invoke his statutory right. Daniel procured expert advice and secured satisfactory resolution informally and sell the flat.
Dr Joshua Laurent completed a first floor apartment in Wotton under Edge in August 2010. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparative premises in Wotton under Edge with a long lease were in the region of £265,000. The average ground rent payable was £50 collected every twelve months. The lease ran out on 17 April 2098. Considering the 73 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Last Winter we were approach by Mr O André , who bought a first floor flat in Wotton under Edge in February 1997. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative properties in Wotton under Edge with a long lease were valued about £264,000. The average amount of ground rent was £60 billed every twelve months. The lease lapsed on 6 August 2078. Taking into account 53 years outstanding we estimated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of professional charges.