With a residential leasehold property in Wantage, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years remaining. Leasehold owners in Wantage with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has fewer than eighty years outstanding, under the relevant statute the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Wantage with more than one hundred years left on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Wantage,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wantage valuers.
Off the back of unsuccessful negotiations with the landlord of her basement flat in Wantage, Molly commenced the lease extension process as the eighty year threshold was fast advancing. The transaction was concluded in April 2015. The landlord’s fees were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. V Martínez who, having owned a newly refurbished flat in Wantage in June 2003. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical homes in Wantage with an extended lease were valued around £189,000. The average amount of ground rent was £55 billed annually. The lease ended in 2078. Given that there were 53 years unexpired we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.
In 2009 we were e-mailed by Ms Ashleigh Harris who, having acquired a recently refurbished apartment in Wantage in January 2003. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical premises in Wantage with an extended lease were worth £290,000. The average ground rent payable was £45 collected quarterly. The lease came to a finish in 2098. Given that there were 73 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.