The market value of a leasehold property in Wendover is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be addressed prior to the 80 year cut off point. Leasehold Reform legislation enables Wendover qualifying lessees to an additional term of ninety years in addition to the remaining term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 undertake 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 conveyancer we work with provide it.
In recent months David, started to get close to the eighty-year mark with the lease on his leasehold apartment in Wendover. Having bought his flat two decades ago, the length of the lease was of little interest. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. David was able to extend his lease just under the wire last January. David and the landlord subsequently settled on the final figure of £5,500 . If the lease had gone to less than 80 years, the price would have become more costly by at least £975.
Mr W Ali owned a studio apartment in Wendover in May 2000. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative homes in Wendover with 100 year plus lease were in the region of £260,200. The mid-range ground rent payable was £65 billed monthly. The lease terminated in 2090. Taking into account 66 years remaining we estimated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of fees.
In 2011 we were contacted by Mr and Mrs. R Flores who, having purchased a purpose-built flat in Wendover in February 2005. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar flats in Wendover with a long lease were worth £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease ran out in 2079. Taking into account 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.