Wilmslow residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold properties in Wilmslow with more than one hundred years unexpired 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 reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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.
Joshua was the the leasehold owner of a 2 bedroom apartment in Wilmslow on the market with a lease of fraction over sixty years outstanding. Joshua on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2013 we were e-mailed by Mr and Mrs. J Morris who, having acquired a basement flat in Wilmslow in July 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Wilmslow with an extended lease were worth £200,800. The average amount of ground rent was £65 billed per annum. The lease elapsed on 11 August 2085. Taking into account 60 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of costs.
Last Autumn we were phoned by Mr and Mrs. I Bailey , who completed a ground floor apartment in Wilmslow in March 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Wilmslow with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 collected per annum. The lease lapsed on 21 July 2096. Given that there were 71 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.