Wilmslow leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Wilmslow residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wilmslow you should see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Wilmslow,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wilmslow valuers.
Subsequent to protracted discussions with the freeholder of her ground floor apartment in Wilmslow, Nicole started the lease extension process as the 80 year mark was swiftly approaching. The legal work was concluded in November 2015. The freeholder’s costs were negotiated to below 500 GBP.
Dr C Cooper was assigned a lease of a ground floor apartment in Wilmslow in July 2002. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Wilmslow with a long lease were valued around £290,000. The mid-range ground rent payable was £60 collected per annum. The lease terminated on 9 April 2105. Taking into account 80 years left we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
In 2010 we were e-mailed by Mr Dexter Garcia who, having acquired a one bedroom apartment in Wilmslow in November 1999. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparable flats in Wilmslow with an extended lease were valued around £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease ended on 12 August 2085. Taking into account 60 years left we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of legals.