On the balance of probabilities if you own a flat in Wednesfield you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a landlord in Wednesfield,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wednesfield valuers.
After protracted negotiations with the freeholder of her garden apartment in Wednesfield, Ella started the lease extension process as the eighty year threshold was quickly approaching. The legal work was concluded in March 2008. The freeholder’s fees were negotiated to less than six hundred GBP.
Last Winter we were called by Mr and Mrs. O François , who acquired a one bedroom flat in Wednesfield in May 2011. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical homes in Wednesfield with a long lease were worth £205,000. The mid-range ground rent payable was £50 collected every twelve months. The lease finished on 13 October 2104. Considering the 79 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
In 2013 we were phoned by Mr Thomas Nelson who, having purchased a ground floor apartment in Wednesfield in August 2005. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Wednesfield with 100 year plus lease were valued about £275,000. The average amount of ground rent was £65 collected yearly. The lease ended in 2093. Considering the 68 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.