Unfortunately that a Writtle residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Writtle property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. Most flat owners in Writtle will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Writtle with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Writtle can be a difficult process. We recommend you get professional help from a lawyer 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 in-depth market knowledge procuring Writtle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Felix, started to get close to the 80-year mark with the lease on his first floor apartment in Writtle. In buying his flat two decades ago, the length of the lease was of minimal bearing. by good luck, he recognised he needed to take steps soon on Extending the lease. Felix was able to extend his lease at the eleventh hour last March. Felix and the freeholder via the managing agents subsequently settled on sum of £6,000 . If he not met the deadline, the price would have become more costly by at least £850.
Mr and Mrs. H Turner completed a purpose-built flat in Writtle in January 2010. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar residencies in Writtle with a long lease were in the region of £245,000. The average ground rent payable was £50 invoiced per annum. The lease ended in 2094. Having 68 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Mr and Mrs. U Collins took over the lease of a one bedroom flat in Writtle in October 2001. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar premises in Writtle with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease concluded on 16 April 2105. Taking into account 79 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.