As the length of the unexpired term of a Wilmslow domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Wilmslow will qualify for this right; that being said a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Wilmslow with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Wilmslow 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.
Edward owned a high value apartment in Wilmslow on the market with a lease of fraction over sixty years outstanding. Edward informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Edward to invoke his statutory right. Edward procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Christmas we were approach by Ms U Laurent , who bought a purpose-built flat in Wilmslow in March 1997. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical premises in Wilmslow with an extended lease were worth £166,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease termination date was in 2080. Having 54 years as a residual term we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of costs.
Last Summer we were phoned by Mr Nathaniel Wood , who took over the lease of a purpose-built apartment in Wilmslow in May 2008. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable premises in Wilmslow with 100 year plus lease were worth £227,800. The average ground rent payable was £45 invoiced monthly. The lease concluded in 2091. Considering the 65 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.