When it comes to domestic leasehold property in Wimborne, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years left. Anyone in Wimborne with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has below 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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 Wimborne can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Wimborne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Teddy, came precariously near to the 80-year threshold with the lease on his purpose- built apartment in Wimborne. Having purchased his property two decades ago, the unexpired term was of little bearing. by good luck, he realised he needed to take action soon on Extending the lease. Teddy arranged for a lease extension at the eleventh hour last June. Teddy and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had slid below 80 years, the price would have gone up by at least £975.
Ms Morgan Williams bought a garden flat in Wimborne in February 2008. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparative homes in Wimborne with a long lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease finished on 23 June 2088. Having 63 years left we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including fees.
Last Summer we were approach by Mr and Mrs. V Green , who purchased a one bedroom flat in Wimborne in July 2011. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in Wimborne with 100 year plus lease were valued about £181,600. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed on 19 February 2077. Having 52 years remaining we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.