When it comes to long leasehold premises in Great Wyrley, you are actually purchasing a right to reside in a property for a set period of time. 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 as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years left. Leasehold owners in Great Wyrley with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has less than 80 years left, under the relevant legislation the landlord can calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Great Wyrley with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with handle Great Wyrley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Thomas, came precariously close to the eighty-year threshold with the lease on his garden flat in Great Wyrley. In buying his home two decades ago, the unexpired term was of little bearing. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Thomas arranged for a lease extension just ahead of time in September. Thomas and the freeholder via the managing agents ultimately settled on sum of £5,000 . If he not met the deadline, the price would have become more exhorbitant by a minimum £1,100.
Last Winter we were contacted by Ms F Rodríguez , who bought a basement flat in Great Wyrley in February 2005. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable residencies in Great Wyrley with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 invoiced yearly. The lease lapsed in 2100. Given that there were 75 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Mr and Mrs. A Hill bought a purpose-built flat in Great Wyrley in March 1999. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar properties in Great Wyrley with a long lease were in the region of £173,800. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed in 2080. Considering the 55 years unexpired we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.