Wolviston leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Wolviston will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Wolviston with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
In the wake of 6 months of lengthy negotiations with the freeholder of her studio flat in Wolviston, Isobel started the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The legal work completed in March 2015. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. M Ali acquired a one bedroom flat in Wolviston in February 2008. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical homes in Wolviston with an extended lease were in the region of £205,000. The average amount of ground rent was £50 invoiced annually. The lease termination date was in 2104. Having 78 years outstanding we approximated the premium to the freeholder to extend the lease to be within £7,600 and £8,800 not including professional charges.
Last Autumn we were e-mailed by Dr James Walker , who purchased a ground floor flat in Wolviston in February 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical homes in Wolviston with 100 year plus lease were valued about £270,000. The average ground rent payable was £65 invoiced quarterly. The lease came to a finish in 2094. Given that there were 68 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.