The nearer a residential lease in Wantage nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Wantage will meet the qualifying criteria; however a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Wantage with over 100 years left on the lease are sometimes referred to as ‘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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord 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.
Half a year ago Alfie, started to get close to the eighty-year threshold with the lease on his garden apartment in Wantage. In buying his home two decades ago, the length of the lease was of no bearing. Fortunately, he recognised he would soon be paying way over the odds for Extending the lease. Alfie arranged for a lease extension at the eleventh hour last April. Alfie and the landlord who owned the flat above in the end settled on sum of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £1,075.
Last Spring we were called by Mr Archie Bonnet , who completed a one bedroom flat in Wantage in April 2010. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable properties in Wantage with 100 year plus lease were worth £240,600. The average ground rent payable was £60 invoiced quarterly. The lease expired on 11 August 2088. Having 62 years unexpired we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus professional charges.
In 2014 we were e-mailed by Mr Caleb Walker who, having owned a purpose-built apartment in Wantage in May 2003. The question was if we could approximate the price could be for a ninety year lease extension. Similar residencies in Wantage with a long lease were in the region of £174,200. The average ground rent payable was £55 collected monthly. The lease elapsed in 2077. Given that there were 51 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.