Wakefield leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. Flat owners in Wakefield will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Wakefield with more than 100 years unexpired 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Yorkshire Building Society |
Lease extensions in Wakefield can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in lease extensions.
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 Wakefield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Benjamin, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Wakefield. Having purchased his property two decades ago, the lease term was of no interest. Luckily, he recognised he needed to take action soon on Extending the lease. Benjamin was able to extend his lease just in the nick of time in April. Benjamin and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he not met the deadline, the amount would have gone up by a minimum £1,050.
In 2011 we were called by Mr Jamie Smith who, having moved into a ground floor flat in Wakefield in June 2007. The question was if we could estimate the premium would be for a ninety year lease extension. Comparable homes in Wakefield with an extended lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected per annum. The lease finished on 25 September 2087. Having 61 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.
In 2013 we were phoned by Mrs Madeleine Hernández who, having took over the lease of a one bedroom flat in Wakefield in July 2011. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar homes in Wakefield with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded on 10 May 2098. Having 72 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.