Wokingham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Wokingham tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Wokingham you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Wokingham with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wokingham can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
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 Wokingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the landlord of her first floor apartment in Wokingham, Daisy commenced the lease extension process as the eighty year threshold was fast approaching. The lease extension completed in May 2015. The landlord’s costs were kept to an absolute minimum.
Mrs F Bell purchased a one bedroom flat in Wokingham in May 2003. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Similar premises in Wokingham with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 billed monthly. The lease termination date was on 10 January 2089. Having 64 years left we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus costs.
In 2014 we were e-mailed by Dr R King who, having took over the lease of a one bedroom flat in Wokingham in May 2012. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical premises in Wokingham with a long lease were in the region of £189,000. The average ground rent payable was £55 invoiced yearly. The lease ran out on 24 February 2078. Given that there were 53 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.