Wolverton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Wolverton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wolverton you really ought to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wolverton can be a difficult process. We recommend you secure professional help from a lawyer 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 Wolverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Nathaniel, started to get near to the 80-year mark with the lease on his garden apartment in Wolverton. In buying his property two decades ago, the unexpired term was of no relevance. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Nathaniel extended the lease at the eleventh hour in March. Nathaniel and the freeholder subsequently settled on an amount of £5,000 . If the lease had gone below 80 years, the sum would have gone up by a minimum £1,000.
Last year we were called by Dr Freddie Lambert , who took over the lease of a ground floor flat in Wolverton in April 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Wolverton with an extended lease were valued about £260,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed in 2096. Having 72 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
Last year we were contacted by Mr and Mrs. N Rodríguez , who bought a studio flat in Wolverton in August 2009. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Wolverton with 100 year plus lease were worth £256,600. The average amount of ground rent was £60 invoiced yearly. The lease lapsed on 4 October 2076. Having 52 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus costs.