The market value of a leasehold property in Wendover is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that formalities can be finalised well before the 80 year mark. Leasehold Reform legislation enables Wendover qualifying lessees to an additional term of 90 years over and above the unexpired term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Wendover with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Halifax | Minimum 70 years from the date 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 conveyancing solicitors that we work with procure Wendover 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 conveyancing solicitor we work with provide it.
Jonathan owned a studio apartment in Wendover on the market with a lease of a few days over fifty eight years unexpired. Jonathan informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2014 we were called by Mr and Mrs. K López who, having purchased a one bedroom apartment in Wendover in September 2008. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Wendover with 100 year plus lease were valued around £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended on 24 February 2102. Having 77 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
Ms P Rose purchased a studio apartment in Wendover in October 1999. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparative homes in Wendover with an extended lease were in the region of £260,200. The average amount of ground rent was £65 invoiced monthly. The lease expired on 25 August 2091. Taking into account 66 years outstanding we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including professional charges.