Wimborne leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Wimborne enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wimborne you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancing solicitors that we work with handle Wimborne 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 lawyer we work with provide it.
Andrew owned a conversion apartment in Wimborne on the market with a lease of just over fifty eight years left. Andrew on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew procured expert advice and secured satisfactory resolution informally and sell the property.
In 2011 we were contacted by Mrs Ellie Mercier who, having took over the lease of a one bedroom apartment in Wimborne in August 2012. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical flats in Wimborne with an extended lease were valued about £184,000. The mid-range ground rent payable was £55 collected quarterly. The lease ran out in 2078. Considering the 53 years remaining we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.
Last Christmas we were phoned by Dr F Thompson , who was assigned a lease of a garden flat in Wimborne in November 2008. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Wimborne with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 billed annually. The lease lapsed on 19 August 2098. Considering the 73 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.