It’s a harsh certainty that a Wanborough residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Wanborough property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Wanborough will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Wanborough with in excess of one hundred 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Wanborough,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wanborough valuers.
Luca was the the leasehold proprietor of a conversion apartment in Wanborough being sold with a lease of a little over fifty eight years left. Luca informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Luca to exercise his statutory right. Luca obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last June we were approach by Mrs Holly Bernard , who owned a ground floor flat in Wanborough in January 2002. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative homes in Wanborough with a long lease were valued about £200,800. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish in 2086. Considering the 60 years remaining we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 plus legals.
Last month we were contacted by Dr Harrison Brown , who owned a one bedroom flat in Wanborough in August 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Wanborough with 100 year plus lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease lapsed in 2097. Taking into account 71 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.