The value of Wimborne leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years
Leasehold residencies in Wimborne with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective 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 in-depth market knowledge and the close ties they enjoy with Wimborne valuers.
16 months ago Aaron, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Wimborne. In buying his flat twenty years previously, the length of the lease was of minimal relevance. Thankfully, he realised he would soon be paying way over the odds for Extending the lease. Aaron arranged for a lease extension just in the nick of time last April. Aaron and the freeholder via the management company ultimately settled on the final figure of £5,000 . If the lease had descended to less than eighty years, the sum would have gone up by at least £1,050.
Dr Ashleigh Laurent was assigned a lease of a purpose-built apartment in Wimborne in September 2002. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical flats in Wimborne with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected annually. The lease terminated in 2105. Having 80 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.
Last Summer we were phoned by Mr Ali Roberts , who moved into a newly refurbished apartment in Wimborne in February 2003. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative homes in Wimborne with an extended lease were valued about £275,000. The average amount of ground rent was £45 billed quarterly. The lease ended in 2094. Having 69 years unexpired we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.