The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Wimborne have the right to extend the lease for a further 90 years under legislation. Please give careful consideration before delaying your Wimborne lease extension. Putting off that expense now simply escalates the price you will eventually be required to pay for a lease extension.
Leasehold residencies in Wimborne with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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 lawyers 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 conveyancer we work with provide it.
After protracted discussions with the landlord of her leasehold apartment in Wimborne, Nicole initiated the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work was finalised in May 2008. The freeholder’s fees were restricted to under four hundred pounds.
Last Winter we were e-mailed by Dr N Stewart , who moved into a ground floor flat in Wimborne in January 2000. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparable premises in Wimborne with an extended lease were valued about £235,600. The mid-range ground rent payable was £60 billed every twelve months. The lease ended in 2087. Having 62 years left we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.
Last Summer we were called by Mr Theo Petit , who owned a studio flat in Wimborne in July 2005. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparable properties in Wimborne with a long lease were worth £174,200. The average ground rent payable was £55 invoiced every twelve months. The lease ended in 2076. Considering the 51 years left we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.