Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Wantage. Inevitably, the term of lease left shortens as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Wantage have the right to extend the lease for a further 90 years under statute. Do give careful deliberation before putting off your Wantage lease extension. Putting off that expense now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Wantage can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 procuring Wantage lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Felix, came dangerously close to the 80-year mark with the lease on his two bedroom flat in Wantage. Having bought his property 19 years ago, the length of the lease was of no relevance. As luck would have it, he noticed he needed to take action soon on a lease extension. Felix was able to extend his lease just under the wire in May. Felix and the landlord eventually settled on the final figure of £5,000 . If he had missed the deadline, the premium would have escalated by a minimum £925.
Last Spring we were contacted by Mr John Thomas , who moved into a first floor apartment in Wantage in March 2010. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable premises in Wantage with an extended lease were in the region of £285,000. The average ground rent payable was £45 billed quarterly. The lease finished in 2097. Having 72 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.
Last Autumn we were approach by Mr and Mrs. M Martínez , who owned a ground floor apartment in Wantage in November 2005. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparable residencies in Wantage with an extended lease were valued around £233,200. The mid-range ground rent payable was £60 billed every twelve months. The lease ran out in 2086. Taking into account 61 years unexpired we approximated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including fees.