With a long leasehold premises in Wilmslow, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years remaining. Anyone in Wilmslow with a lease drawing near to 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has less than eighty years left, under the relevant legislation the landlord can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Wilmslow with in excess of one hundred years left on the lease are sometimes referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Lease extensions in Wilmslow can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Wilmslow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her first floor flat in Wilmslow, Imogen initiated the lease extension process just as her lease was approaching the critical eighty-year deadline. The legal work was finalised in August 2008. The freeholder’s charges were negotiated to less than 450 pounds.
Last Spring we were called by Mr Rory Lefebvre , who took over the lease of a studio flat in Wilmslow in June 2000. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Wilmslow with an extended lease were worth £265,000. The mid-range ground rent payable was £55 billed yearly. The lease lapsed in 2100. Considering the 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
Mr Harvey Miller took over the lease of a garden apartment in Wilmslow in October 1998. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative flats in Wilmslow with a long lease were worth £166,400. The average amount of ground rent was £60 invoiced yearly. The lease ran out on 7 February 2080. Taking into account 54 years remaining we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including costs.