It’s a harsh certainty that a Wilmslow residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Wilmslow property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Wilmslow will be able to extend under the legislation; however a conveyancer should be able to confirm if 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 from beginning to end of the process.
Leasehold properties in Wilmslow with in excess of 100 years outstanding 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Wilmslow,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wilmslow valuers.
During the course of the last few months Aaron, started to get near to the 80-year mark with the lease on his purpose- built flat in Wilmslow. Having bought his flat 18 years ago, the unexpired term was of minimal concern. As luck would have it, he noticed he would soon be paying way over the odds for a lease extension. Aaron extended the lease just in the nick of time last April. Aaron and the freeholder via the management company eventually settled on an amount of £5,000 . If he not met the deadline, the price would have escalated by a minimum £1,000.
In 2009 we were called by Mr and Mrs. G Bennett who, having bought a first floor flat in Wilmslow in September 2007. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparable flats in Wilmslow with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease finished on 3 February 2077. Given that there were 51 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus costs.
Last month we were called by Dr Nathaniel Nelson , who moved into a ground floor apartment in Wilmslow in February 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparative properties in Wilmslow with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out on 16 February 2088. Given that there were 62 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of expenses.