The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Wellesbourne have the right to extend the lease for a further ninety years in accordance with legislation. Please give careful consideration before delaying your Wellesbourne lease extension. Putting off that expense today simply escalates the price you will ultimately have to pay to extend the lease.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Wellesbourne can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Wellesbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the freeholder of her garden flat in Wellesbourne, Freya initiated the lease extension process just as the lease was approaching the crucial eighty-year threshold. The transaction was concluded in August 2012. The freeholder’s costs were kept to an absolute minimum.
Last year we were phoned by Mr and Mrs. M Turner , who was assigned a lease of a first floor flat in Wellesbourne in August 2000. The question was if we could approximate the price would likely be to extend the lease by ninety years. Identical properties in Wellesbourne with a long lease were valued about £205,000. The average ground rent payable was £50 billed every twelve months. The lease termination date was in 2104. Having 79 years unexpired we approximated the premium to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of professional charges.
Ms A Parker purchased a studio apartment in Wellesbourne in March 2002. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparable residencies in Wellesbourne with an extended lease were worth £275,000. The mid-range ground rent payable was £65 billed per annum. The lease elapsed in 2093. Having 68 years unexpired we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.