The value of Wilmslow leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is below than 80 years
Leasehold properties in Wilmslow with in excess of 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Wilmslow,the lease extension lawyers that we work with will always be prepared 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.
Jackson was the the leasehold proprietor of a conversion flat in Wilmslow being marketed with a lease of just over 72 years left. Jackson on an informal basis approached his landlord 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 subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. R Edwards took over the lease of a basement flat in Wilmslow in August 2000. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative residencies in Wilmslow with an extended lease were valued about £191,000. The average ground rent payable was £65 billed every twelve months. The lease ran out in 2084. Taking into account 58 years unexpired we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including costs.
Ms Hollie Morel owned a basement flat in Wilmslow in May 1995. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Wilmslow with an extended lease were valued about £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease lapsed on 25 November 2095. Taking into account 69 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.