With a residential leasehold premises in Wellesbourne, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years remaining. Leasehold owners in Wellesbourne with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Wellesbourne with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Wellesbourne leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alex was the the leasehold proprietor of a high value flat in Wellesbourne being marketed with a lease of fraction over fifty eight years remaining. Alex on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Alex to invoke his statutory right. Alex procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. O Nguyen took over the lease of a ground floor apartment in Wellesbourne in November 1999. The question was if we could approximate the price would be to extend the lease by 90 years. Comparable homes in Wellesbourne with an extended lease were valued about £243,000. The average amount of ground rent was £65 billed quarterly. The lease finished on 11 April 2089. Having 63 years left we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of expenses.
Last August we were called by Mr and Mrs. R Bailey , who owned a one bedroom flat in Wellesbourne in May 2002. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative premises in Wellesbourne with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced monthly. The lease terminated in 2078. Considering the 52 years remaining we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.