On the balance of probabilities if you own a flat in Wednesfield you actually own a long leasehold interest over your property
Leasehold premises in Wednesfield with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| 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; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Wednesfield leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the freeholder of her garden apartment in Wednesfield, Amelia initiated the lease extension process as the eighty year threshold was quickly coming. The transaction completed in October 2011. The freeholder’s costs were negotiated to slightly above 550 pounds.
Last February we were phoned by Mr and Mrs. P Taylor , who took over the lease of a ground floor apartment in Wednesfield in April 2012. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable properties in Wednesfield with 100 year plus lease were valued about £189,000. The average ground rent payable was £55 collected monthly. The lease lapsed in 2078. Taking into account 53 years outstanding we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.
Dr W Rose moved into a newly refurbished flat in Wednesfield in July 1999. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Similar homes in Wednesfield with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed annually. The lease came to a finish in 2098. Considering the 73 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.