When it comes to long leasehold property in Fir Vale and Wadsley Bridge, you are in fact renting it for a certain period of time. Modern 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 may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years remaining. Leasehold owners in Fir Vale and Wadsley Bridge with a lease drawing near to 81 years left should seriously think of extending it sooner than later. When a lease has below 80 years remaining, under the current statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Fir Vale and Wadsley Bridge can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 Fir Vale and Wadsley Bridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the freeholder of her purpose-built apartment in Fir Vale and Wadsley Bridge, Rhiannon initiated the lease extension process as the eighty year threshold was rapidly nearing. The legal work completed in May 2011. The freeholder’s costs were restricted to about 650 GBP.
Last month we were approach by Ms Stephanie Wilson , who bought a studio apartment in Fir Vale and Wadsley Bridge in February 1996. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable homes in Fir Vale and Wadsley Bridge with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease expired in 2103. Given that there were 78 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.
Mrs L Ricardo owned a basement flat in Fir Vale and Wadsley Bridge in March 2004. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Fir Vale and Wadsley Bridge with 100 year plus lease were in the region of £191,000. The average amount of ground rent was £65 collected quarterly. The lease concluded in 2083. Given that there were 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including legals.