Wilmslow leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Wilmslow residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wilmslow you would be well advised to check if your lease has between 70 and ninety years left. There are good reasons why a Wilmslow flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in Wilmslow with over one hundred years outstanding 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Wilmslow,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wilmslow valuers.
Jonathan owned a conversion apartment in Wilmslow being sold with a lease of fraction over 72 years remaining. Jonathan informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
In 2013 we were e-mailed by Mr Dexter André who, having acquired a one bedroom flat in Wilmslow in January 1998. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative homes in Wilmslow with an extended lease were in the region of £260,000. The average amount of ground rent was £50 collected every twelve months. The lease finished in 2098. Considering the 72 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Mr and Mrs. L Moore acquired a studio apartment in Wilmslow in August 2003. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparable flats in Wilmslow with 100 year plus lease were valued about £256,600. The mid-range ground rent payable was £60 collected yearly. The lease elapsed on 16 May 2078. Given that there were 52 years left we approximated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including expenses.