Wakefield leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Wakefield will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately 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 many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 get professional help from a conveyancing solicitor and valuer 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 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.
Two years ago Kian, came precariously close to the eighty-year threshold with the lease on his ground floor apartment in Wakefield. In buying his property two decades ago, the lease term was of minimal significance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Kian arranged for a lease extension just in the nick of time last May. Kian and the landlord eventually settled on a premium of £6,000 . If the lease had fallen to less than 80 years, the figure would have escalated by a minimum £1,075.
In 2009 we were called by Mr and Mrs. U Lee who, having took over the lease of a first floor flat in Wakefield in June 1996. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable properties in Wakefield with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 collected annually. The lease termination date was in 2106. Having 80 years unexpired we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.
Last month we were approach by Mr and Mrs. E Thompson , who bought a purpose-built flat in Wakefield in March 1995. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar premises in Wakefield with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease expired on 5 March 2086. Considering the 60 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of costs.