There is no doubt about it a leasehold property in Writtle is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 99 years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Writtle will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Last Spring Ben, started to get near to the eighty-year mark with the lease on his leasehold flat in Writtle. In buying his property 18 years ago, the lease term was of minimal relevance. Luckily, he became aware that he needed to take action soon on Extending the lease. Ben arranged for a lease extension at the eleventh hour in March. Ben and the freeholder via the managing agents in the end agreed on sum of £5,500 . If the lease had slipped below 80 years, the sum would have escalated by a minimum £1,100.
Last Spring we were phoned by Mr and Mrs. C Murphy , who owned a one bedroom flat in Writtle in August 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Writtle with an extended lease were worth £176,200. The mid-range ground rent payable was £65 collected per annum. The lease ran out on 5 March 2082. Taking into account 56 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including professional charges.
Mr G Bailey purchased a one bedroom flat in Writtle in May 2003. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative premises in Writtle with a long lease were valued about £242,600. The average ground rent payable was £45 billed per annum. The lease lapsed in 2093. Given that there were 67 years as a residual term we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of expenses.