Wantage leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Wantage enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wantage you really ought to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Wantage with over 100 years remaining 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB |
The lawyers that we work with handle Wantage lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Blake owned a 2 bedroom apartment in Wantage being marketed with a lease of just over 61 years unexpired. Blake informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Blake to exercise his statutory right. Blake procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
Mrs C Lefèvre bought a studio flat in Wantage in August 2003. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable properties in Wantage with 100 year plus lease were valued around £267,600. The mid-range amount of ground rent was £65 billed yearly. The lease terminated on 24 July 2093. Given that there were 67 years left we calculated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 not including legals.
In 2010 we were approached by Ms O Sánchez who, having moved into a garden apartment in Wantage in May 1996. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparative homes in Wantage with a long lease were in the region of £206,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease concluded in 2082. Given that there were 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.