Wantage leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Wantage tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Wantage you should see if your lease has between seventy and ninety years remaining. There are good reasons why a Wantage leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Wantage with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Retaining our service will provide you enhanced control over the value of your Wantage leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Archie, started to get near to the eighty-year mark with the lease on his basement apartment in Wantage. In buying his home 19 years ago, the unexpired term was of minimal relevance. Luckily, he realised he needed to take action soon on Extending the lease. Archie arranged for a lease extension just in the nick of time last May. Archie and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,000.
Last year we were phoned by Dr C Laurent , who purchased a basement flat in Wantage in January 2009. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical homes in Wantage with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated on 5 January 2105. Considering the 79 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
Last April we were phoned by Mr and Mrs. U González , who purchased a purpose-built flat in Wantage in February 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Wantage with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease came to a finish in 2094. Given that there were 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.