It’s a harsh truth that a Wilmslow residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Wilmslow property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. Most flat owners in Wilmslow will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| TSB |
The conveyancers that we work with undertake 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.
In recent months Leo, came perilously close to the eighty-year threshold with the lease on his first floor flat in Wilmslow. Having purchased his home 18 years ago, the unexpired term was of little significance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Leo arranged for a lease extension just under the wire last March. Leo and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If he had missed the deadline, the premium would have escalated by at least £1,075.
Dr Jamie Williams owned a first floor flat in Wilmslow in August 2011. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Wilmslow with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease finished on 20 June 2087. Having 61 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including legals.
In 2013 we were called by Mr L Cook who, having completed a first floor flat in Wilmslow in April 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical properties in Wilmslow with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded in 2098. Given that there were 72 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.