The market value of Writtle leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is less than eighty years
Leasehold properties in Writtle with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
The lawyers that we work with procure Writtle 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.
Austin was the the leasehold owner of a high value flat in Writtle on the market with a lease of fraction over 72 years remaining. Austin informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Austin to exercise his statutory right. Austin obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Dr F Girard completed a newly refurbished flat in Writtle in July 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Writtle with an extended lease were valued around £218,000. The mid-range ground rent payable was £45 collected yearly. The lease ended on 13 November 2089. Taking into account 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus expenses.
Mr O Kelly moved into a one bedroom apartment in Writtle in September 2007. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable flats in Writtle with an extended lease were worth £265,000. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish on 9 August 2100. Taking into account 74 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.