There is no doubt about it a leasehold flat or house in Wennington is a wasting asset as a result of the shortening lease. Where the lease has, over 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Wennington will qualify for this right; however a lawyer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Wennington with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Wennington leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the freeholder of her first floor flat in Wennington, Nicole commenced the lease extension process just as the lease was coming close to the critical 80-year mark. The legal work was finalised in July 2005. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were contacted by Dr Matthew Petit who, having purchased a one bedroom flat in Wennington in September 1997. The question was if we could estimate the price could be to extend the lease by 90 years. Similar homes in Wennington with an extended lease were worth £189,000. The average ground rent payable was £55 collected quarterly. The lease elapsed on 14 October 2078. Considering the 53 years outstanding we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Wennington residence is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The unexpired residue of the current lease was 76 years.