The re-sale value of a leasehold property in Great Wyrley depends on how many years the lease has remaining. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded well before the eighty year threshold. Current legislation enables Great Wyrley qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
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 conveyancing solicitor we work with provide it.
Last year Jamie, started to get near to the 80-year mark with the lease on his leasehold apartment in Great Wyrley. In buying his home two decades ago, the unexpired term was of no bearing. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Jamie arranged for a lease extension at the eleventh hour in July. Jamie and the freeholder via the managing agents eventually settled on a premium of £6,000 . If he not met the deadline, the sum would have increased by a minimum £850.
Dr Lewis Dupont took over the lease of a ground floor flat in Great Wyrley in June 2007. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Great Wyrley with 100 year plus lease were in the region of £254,200. The average ground rent payable was £60 collected monthly. The lease terminated in 2076. Considering the 51 years outstanding we estimated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including fees.
In 2010 we were called by Mr and Mrs. P Reed who, having purchased a ground floor flat in Great Wyrley in October 2003. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable properties in Great Wyrley with 100 year plus lease were worth £210,600. The average ground rent payable was £45 invoiced monthly. The lease expired in 2087. Having 62 years left we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of fees.