Wakefield 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 the 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 really ought to check if your lease has between seventy and 90 years left. There are good reasons why a Wakefield leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Wakefield with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| 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. |
The conveyancers that we work with handle Wakefield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following lengthy correspondence with the landlord of her one bedroom flat in Wakefield, Emma initiated the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction was concluded in January 2009. The landlord’s charges were kept to an absolute minimum.
Ms Eleanor Khan took over the lease of a first floor apartment in Wakefield in February 2000. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative homes in Wakefield with an extended lease were in the region of £176,200. The average amount of ground rent was £65 billed quarterly. The lease expiry date was on 17 April 2081. Taking into account 56 years remaining we approximated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 plus legals.
Mr and Mrs. D Cooper completed a one bedroom flat in Wakefield in September 2002. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical flats in Wakefield with an extended lease were worth £242,600. The average ground rent payable was £45 collected yearly. The lease expired on 6 November 2092. Having 67 years remaining we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 plus fees.