As the the remaining lease term of a Great Wyrley domestic lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 125 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Great Wyrley will meet the qualifying criteria; however a lawyer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Great Wyrley with more than 100 years left 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
The conveyancers that we work with procure 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 conveyancer we work with provide it.
Felix owned a studio flat in Great Wyrley being sold with a lease of fraction over fifty eight years outstanding. Felix informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Felix to invoke his statutory right. Felix procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr J González took over the lease of a one bedroom flat in Great Wyrley in June 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Similar premises in Great Wyrley with a long lease were in the region of £218,000. The average ground rent payable was £45 collected per annum. The lease ran out on 4 November 2088. Taking into account 63 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus costs.
Mr and Mrs. D Stewart completed a studio flat in Great Wyrley in October 2001. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar properties in Great Wyrley with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £55 billed quarterly. The lease end date was in 2099. Given that there were 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.