Wimborne residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Lease extensions in Wimborne can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
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.
Off the back of protracted discussions with the freeholder of her basement apartment in Wimborne, Abbie commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension completed in November 2007. The freeholder’s fees were restricted to under 450 GBP.
Last Autumn we were approach by Mr Lewis Stewart , who purchased a garden apartment in Wimborne in September 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Wimborne with a long lease were valued about £275,000. The average amount of ground rent was £45 invoiced annually. The lease terminated on 14 November 2095. Having 69 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
Mr and Mrs. F Jackson moved into a one bedroom flat in Wimborne in April 2012. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Identical homes in Wimborne with a long lease were worth £216,000. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 21 March 2084. Considering the 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus legals.