Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Wolviston. Clearly, the length of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the property needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Wolviston have the legal entitlement to extend the lease for a further ninety years under statute. You should give due consideration before delaying your Wolviston lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Yorkshire Building Society | 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. |
The lawyers that we work with procure 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.
Charlie was the the leasehold proprietor of a 2 bedroom flat in Wolviston on the market with a lease of just over fifty eight years outstanding. Charlie informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Charlie to invoke his statutory right. Charlie obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. D Davies completed a studio flat in Wolviston in July 2004. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparable properties in Wolviston with an extended lease were worth £265,200. The mid-range amount of ground rent was £65 billed per annum. The lease came to a finish on 6 April 2092. Having 66 years outstanding we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of expenses.
In 2013 we were called by Mr and Mrs. A Laurent who, having acquired a basement flat in Wolviston in February 2001. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Comparable homes in Wolviston with 100 year plus lease were valued around £198,800. The mid-range ground rent payable was £55 invoiced yearly. The lease lapsed in 2081. Considering the 55 years outstanding we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of professional charges.