Much Wenlock leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Much Wenlock residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Much Wenlock you really ought to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Much Wenlock flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| 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. |
Lease extensions in Much Wenlock can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Much Wenlock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jacob was the the leasehold owner of a 2 bedroom apartment in Much Wenlock on the market with a lease of a few days over sixty years outstanding. Jacob informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2010 we were approached by Mr and Mrs. T Bonnet who, having took over the lease of a studio flat in Much Wenlock in June 2007. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Much Wenlock with a long lease were valued around £270,000. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish on 11 September 2100. Considering the 75 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. U Thompson moved into a garden apartment in Much Wenlock in March 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Identical residencies in Much Wenlock with 100 year plus lease were valued around £173,800. The average amount of ground rent was £65 invoiced quarterly. The lease concluded in 2080. Having 55 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of fees.