The value of Wimborne leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is less than 80 years
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Wimborne,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wimborne valuers.
Half a year ago Matthew, came very close to the 80-year threshold with the lease on his first floor flat in Wimborne. Having bought his property 19 years ago, the lease term was of no significance. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Matthew was able to extend his lease just under the wire last April. Matthew and the freeholder via the managing agents ultimately agreed on sum of £6,000 . If the lease had fallen below eighty years, the premium would have become more costly by at least £850.
Last Summer we were e-mailed by Mr and Mrs. J Rogers , who purchased a basement flat in Wimborne in November 1999. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative flats in Wimborne with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease expiry date was on 6 November 2103. Considering the 77 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Dr J Howard completed a studio apartment in Wimborne in July 2004. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical homes in Wimborne with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced quarterly. The lease ran out in 2092. Having 66 years outstanding we approximated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus professional charges.