With a residential leasehold property in Waolstenholme, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Residents in Waolstenholme with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has under eighty years remaining, under the current Act the freeholder can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Waolstenholme 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 conveyancer we work with provide it.
During the course of the last few months Milo, started to get close to the eighty-year threshold with the lease on his garden flat in Waolstenholme. In buying his home 19 years previously, the length of the lease was of minimal relevance. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Milo arranged for a lease extension just in the nick of time last August. Milo and the freeholder via the managing agents ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the price would have gone up by a minimum £875.
In 2010 we were contacted by Ms H Parker who, having completed a recently refurbished flat in Waolstenholme in October 2005. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical premises in Waolstenholme with an extended lease were worth £240,600. The average amount of ground rent was £60 invoiced yearly. The lease elapsed on 6 May 2087. Considering the 62 years remaining we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.
Dr Chloe Nguyen took over the lease of a studio apartment in Waolstenholme in May 2010. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Waolstenholme with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish on 4 September 2076. Given that there were 51 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of fees.