Unfortunately that a Great Wyrley residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Great Wyrley property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. Most flat owners in Great Wyrley will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| 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. |
| 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 |
Lease extensions in Great Wyrley can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
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 a wealth of experience procuring Great Wyrley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Jackson, started to get near to the 80-year threshold with the lease on his ground floor flat in Great Wyrley. In buying his home two decades ago, the unexpired term was of minimal bearing. Luckily, he recognised he would imminently be paying an escalated premium for a lease extension. Jackson extended the lease at the eleventh hour in April. Jackson and the freeholder via the managing agents eventually settled on a premium of £6,000 . If he had missed the deadline, the price would have gone up by a minimum £975.
Last year we were approach by Mrs B Jones , who owned a studio flat in Great Wyrley in April 2002. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar residencies in Great Wyrley with an extended lease were worth £227,800. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed in 2091. Given that there were 65 years left we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
Last February we were phoned by Dr Austin Peterson , who owned a first floor apartment in Great Wyrley in January 2011. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical premises in Great Wyrley with a long lease were worth £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed on 4 October 2102. Taking into account 76 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.