With a residential leasehold premises in Wednesfield, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Wednesfield with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When the lease term has below eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Wednesfield with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service will provide you increased control over the value of your Wednesfield leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Joshua owned a high value flat in Wednesfield on the market with a lease of a few days over fifty eight years left. Joshua on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2011 we were e-mailed by Dr Lydia Allen who, having was assigned a lease of a purpose-built flat in Wednesfield in March 2012. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Wednesfield with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed quarterly. The lease elapsed on 9 January 2097. Having 72 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
Mr G Ramírez completed a recently refurbished flat in Wednesfield in August 2001. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Wednesfield with 100 year plus lease were valued around £233,200. The average ground rent payable was £60 invoiced annually. The lease ran out in 2086. Considering the 61 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of expenses.