Wolviston leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Wolviston will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Wolviston 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 conveyancing solicitor we work with provide it.
Last October Adam, came critically near to the eighty-year mark with the lease on his basement apartment in Wolviston. In buying his property 18 years previously, the length of the lease was of no significance. Luckily, he realised he would imminently be paying way over the odds for Extending the lease. Adam extended the lease just ahead of time last January. Adam and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If the lease had slipped to less than eighty years, the premium would have gone up by at least £850.
Last month we were approach by Dr H Petit , who acquired a first floor apartment in Wolviston in January 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical properties in Wolviston with a long lease were valued about £252,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2091. Given that there were 65 years as a residual term we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including fees.
Mr and Mrs. C Clark purchased a first floor apartment in Wolviston in October 2008. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Identical premises in Wolviston with an extended lease were in the region of £191,400. The average ground rent payable was £55 billed per annum. The lease ran out in 2080. Given that there were 54 years remaining we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including expenses.