Wimborne leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Wimborne will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not qualify. There are also strict timetables and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
Lease extensions in Wimborne can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Wimborne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam owned a 2 bedroom flat in Wimborne being sold with a lease of a few days over fifty eight years outstanding. Adam informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Adam to invoke his statutory right. Adam procured expert advice and secured satisfactory resolution informally and sell the flat.
In 2012 we were contacted by Ms Lucy Flores who, having completed a purpose-built apartment in Wimborne in February 2011. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable residencies in Wimborne with an extended lease were worth £275,000. The mid-range ground rent payable was £65 collected yearly. The lease end date was in 2093. Taking into account 68 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.
Mr Y Peterson was assigned a lease of a studio apartment in Wimborne in November 2005. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Similar flats in Wimborne with a long lease were in the region of £208,600. The average amount of ground rent was £60 invoiced quarterly. The lease came to a finish in 2082. Considering the 57 years as a residual term we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including fees.