It’s a harsh truth that a Wellingborough residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Wellingborough property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Wellingborough will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. 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 conveyancer for the duration of the process.
Leasehold residencies in Wellingborough with more than 100 years unexpired on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Wellingborough,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wellingborough valuers.
Jackson was the the leasehold proprietor of a conversion flat in Wellingborough on the market with a lease of fraction over fifty eight years unexpired. Jackson on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jackson to invoke his statutory right. Jackson procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2013 we were contacted by Mr N Gray who, having bought a purpose-built flat in Wellingborough in April 1995. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical residencies in Wellingborough with 100 year plus lease were valued around £171,800. The average amount of ground rent was £55 billed per annum. The lease terminated in 2075. Considering the 50 years unexpired we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.
Mr and Mrs. C Watson took over the lease of a newly refurbished apartment in Wellingborough in June 2007. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Wellingborough with an extended lease were worth £280,000. The average ground rent payable was £45 billed per annum. The lease expired on 15 March 2095. Considering the 70 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.