Wotton under Edge leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Flat owners in Wotton under Edge will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with procure Wotton under Edge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to unsuccessful negotiations with the freeholder of her studio apartment in Wotton under Edge, Amber started the lease extension process just as the lease was coming close to the critical 80-year mark. The transaction was finalised in November 2013. The landlord’s charges were kept to an absolute minimum.
Last Summer we were phoned by Mrs F Patel , who acquired a garden apartment in Wotton under Edge in February 2005. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Identical properties in Wotton under Edge with a long lease were worth £235,200. The average amount of ground rent was £45 invoiced yearly. The lease concluded in 2092. Taking into account 66 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
In 2014 we were called by Mrs Samantha Ali who, having took over the lease of a ground floor flat in Wotton under Edge in July 2008. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Similar homes in Wotton under Edge with a long lease were worth £275,000. The average ground rent payable was £55 billed monthly. The lease expired on 2 February 2103. Considering the 77 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.