For those whose Writtle flat is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold properties in Writtle with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
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 conveyancer we work with provide it.
Half a year ago Henry, started to get close to the eighty-year mark with the lease on his studio flat in Writtle. Having bought his flat two decades ago, the unexpired term was of minimal bearing. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Henry arranged for a lease extension just under the wire last June. Henry and the landlord in the end agreed on sum of £5,500 . If he had missed the deadline, the price would have become more exhorbitant by at least £900.
Dr Aarav Collins owned a basement flat in Writtle in March 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Writtle with an extended lease were valued about £270,000. The average amount of ground rent was £55 collected monthly. The lease ended on 25 January 2101. Having 75 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Last Spring we were phoned by Mrs H Díaz , who took over the lease of a garden apartment in Writtle in June 2005. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable flats in Writtle with 100 year plus lease were in the region of £173,800. The average amount of ground rent was £60 billed monthly. The lease came to a finish in 2081. Given that there were 55 years left we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of costs.