Wilmslow leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher premium will be payable. Flat owners in Wilmslow will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Owen owned a studio apartment in Wilmslow on the market with a lease of just over 59 years remaining. Owen informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen procured expert advice and secured an acceptable deal informally and sell the flat.
Mr P Hernández bought a garden apartment in Wilmslow in August 1999. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative residencies in Wilmslow with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 billed annually. The lease lapsed in 2079. Taking into account 53 years outstanding we estimated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus legals.
Last August we were called by Mr and Mrs. O Leroy , who bought a basement flat in Wilmslow in September 2001. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable flats in Wilmslow with a long lease were valued around £225,400. The mid-range amount of ground rent was £45 collected quarterly. The lease ended in 2090. Considering the 64 years left we approximated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 not including legals.