Unfortunately that a Wolviston residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Wolviston property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Wolviston will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Wolviston with in excess of one hundred years left on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Halifax | |
| Nationwide Building Society | |
| Virgin |
The lawyers 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 conveyancer we work with provide it.
After lengthy correspondence with the freeholder of her ground floor flat in Wolviston, Leah initiated the lease extension process as the eighty year mark was fast approaching. The lease extension was finalised in January 2015. The landlord’s charges were negotiated to about 600 pounds.
Last year we were e-mailed by Ms Alisha Anderson , who bought a ground floor apartment in Wolviston in August 2008. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative flats in Wolviston with 100 year plus lease were worth £225,800. The mid-range ground rent payable was £60 billed monthly. The lease ran out in 2086. Considering the 60 years unexpired we approximated the compensation to the landlord to extend the lease to be between £25,700 and £29,600 not including expenses.
Mr and Mrs. V Miller took over the lease of a newly refurbished apartment in Wolviston in May 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Wolviston with an extended lease were worth £210,000. The average ground rent payable was £50 billed annually. The lease concluded in 2106. Given that there were 80 years remaining we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.