Wakefield leases on residential properties are gradually decreasing 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. Most owners of residential leasehold property in Wakefield enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wakefield you would be well advised to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Wakefield can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 a wealth of experience procuring Wakefield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful negotiations with the landlord of her purpose-built apartment in Wakefield, Anna commenced the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The legal work was concluded in November 2015. The freeholder’s costs were negotiated to approximately 600 pounds.
In 2014 we were approached by Mr and Mrs. T Bailey who, having moved into a purpose-built apartment in Wakefield in January 2012. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical properties in Wakefield with a long lease were valued around £254,200. The average ground rent payable was £60 collected quarterly. The lease ran out in 2077. Considering the 51 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus costs.
Last Spring we were phoned by Dr I Hill , who acquired a one bedroom flat in Wakefield in January 2008. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparative properties in Wakefield with a long lease were valued around £210,600. The average amount of ground rent was £45 invoiced quarterly. The lease came to a finish in 2088. Taking into account 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.