For those whose Wimborne flat is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
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 lawyer we work with provide it.
After unsuccessful correspondence with the landlord of her garden flat in Wimborne, Elizabeth initiated the lease extension process just as the lease was approaching the critical 80-year deadline. The lease extension was finalised in October 2008. The landlord’s fees were kept to an absolute minimum.
Dr B Lefebvre purchased a purpose-built apartment in Wimborne in January 2006. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative homes in Wimborne with a long lease were valued around £223,400. The average ground rent payable was £60 collected monthly. The lease terminated in 2085. Considering the 59 years left we approximated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of fees.
Mr and Mrs. W Hernández was assigned a lease of a first floor flat in Wimborne in August 2009. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar properties in Wimborne with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated in 2105. Having 79 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.