Unfortunately that a Welwyn Garden City residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Welwyn Garden City property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term slips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Welwyn Garden City will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Welwyn Garden City with in excess of 100 years remaining on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Welwyn Garden City can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Welwyn Garden City lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
George was the the leasehold proprietor of a 2 bedroom flat in Welwyn Garden City being marketed with a lease of a few days over fifty eight years outstanding. George on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were George to exercise his statutory right. George procured expert advice and secured an acceptable deal without resorting to tribunal and sell the flat.
Dr Lauren Bailey took over the lease of a studio apartment in Welwyn Garden City in March 1997. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Welwyn Garden City with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease terminated in 2102. Having 77 years remaining we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
Last Summer we were called by Mr Luca Norbert , who took over the lease of a one bedroom flat in Welwyn Garden City in January 2000. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical homes in Welwyn Garden City with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected monthly. The lease terminated in 2082. Having 57 years left we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.