Wolviston leases on residential deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. Leasehold owners in Wolviston will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Wolviston,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wolviston valuers.
Last Spring Harvey, started to get near to the 80-year mark with the lease on his leasehold apartment in Wolviston. Having purchased his home two decades ago, the lease term was of little interest. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. Harvey extended the lease at the eleventh hour in August. Harvey and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If the lease had fallen lower than 80 years, the price would have increased by a minimum £950.
In 2009 we were called by Dr C Patel who, having purchased a newly refurbished flat in Wolviston in January 2012. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Wolviston with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed yearly. The lease elapsed on 1 April 2095. Given that there were 70 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.
Last July we were called by Mr and Mrs. W Norbert , who bought a studio apartment in Wolviston in November 2003. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative residencies in Wolviston with an extended lease were worth £223,400. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2084. Taking into account 59 years outstanding we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of fees.