The market value of Great Wyrley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
Subsequent to lengthy discussions with the freeholder of her first floor flat in Great Wyrley, Ella started the lease extension process as the 80 year mark was swiftly approaching. The legal work was finalised in August 2012. The landlord’s fees were restricted to a tad over 500 pounds.
In 2013 we were called by Ms Mollie Girard who, having completed a studio apartment in Great Wyrley in March 2009. The question was if we could approximate the premium could be for a 90 year lease extension. Comparable residencies in Great Wyrley with a long lease were in the region of £275,000. The average ground rent payable was £55 billed quarterly. The lease elapsed in 2103. Having 77 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
In 2013 we were contacted by Dr D François who, having completed a recently refurbished apartment in Great Wyrley in March 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative homes in Great Wyrley with a long lease were valued about £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out in 2083. Taking into account 57 years left we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.