Unfortunately that a Wanborough residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Wanborough property prices.Where your lease has approximately 90 years left, you need to start considering 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 slips under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Wanborough will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. 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 for the duration of the formalities.
Leasehold residencies in Wanborough with in excess of one hundred years remaining on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Wanborough can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 in-depth market knowledge dealing with Wanborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Mason, started to get near to the 80-year mark with the lease on his basement apartment in Wanborough. In buying his home two decades ago, the unexpired term was of little importance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Mason was able to extend his lease just ahead of time last March. Mason and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had dropped lower than 80 years, the price would have become more exhorbitant by at least £1,150.
Last Summer we were approach by Mr and Mrs. J Roux , who owned a ground floor flat in Wanborough in March 1995. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical flats in Wanborough with a long lease were valued about £237,600. The average amount of ground rent was £45 collected per annum. The lease end date was in 2092. Given that there were 67 years remaining we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus costs.
Last Spring we were phoned by Mr J Davis , who was assigned a lease of a basement apartment in Wanborough in February 1995. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable homes in Wanborough with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected annually. The lease concluded in 2103. Taking into account 78 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.