When it comes to long leasehold premises in Welling, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years left. Leasehold owners in Welling with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years remaining, under the current statute the freeholder is entitled to calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Welling can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 dealing with Welling lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the landlord of her studio flat in Welling, Jade started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction completed in February 2009. The freeholder’s fees were kept to an absolute minimum.
Last month we were e-mailed by Mr and Mrs. K Clark , who owned a basement apartment in Welling in November 2011. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Welling with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish on 8 February 2102. Taking into account 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.
An example of a Lease Extension case for a Welling flat is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.