The market value of Wilmslow leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold properties in Wilmslow with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The lawyers that we work with handle 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.
Off the back of unsuccessful negotiations with the freeholder of her first floor flat in Wilmslow, Hannah started the lease extension process as the 80 year deadline was rapidly advancing. The legal work completed in October 2007. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were phoned by Ms Katherine Lefebvre , who was assigned a lease of a ground floor flat in Wilmslow in April 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Wilmslow with a long lease were worth £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease elapsed in 2088. Considering the 63 years unexpired we approximated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of professional charges.
Mr M Ricardo was assigned a lease of a basement flat in Wilmslow in July 2007. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Wilmslow with an extended lease were in the region of £265,000. The average ground rent payable was £55 invoiced every twelve months. The lease ran out on 23 July 2099. Given that there were 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.