The closer a residential lease in Wennington nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. 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 conveyancer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Wennington with over one hundred years left 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 upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
The lawyers that we work with undertake Wennington 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.
In the wake of eight months of protracted discussions with the landlord of her basement flat in Wennington, Lauren commenced the lease extension process just as her lease was coming close to the critical eighty-year threshold. The lease extension was finalised in October 2014. The freeholder’s costs were kept to an absolute minimum.
Last October we were e-mailed by Mr H Rivera , who acquired a newly refurbished apartment in Wennington in September 1997. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative homes in Wennington with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated on 1 June 2095. Given that there were 70 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
An example of a Lease Extension decision for a Wennington flat 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 remaining number of years on the lease was 76 years.