When it comes to residential leasehold premises in Wellesbourne, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than 80 years remaining. Leasehold owners in Wellesbourne with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the current legislation the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Wellesbourne with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wellesbourne can be a difficult process. We recommend you procure guidance from a conveyancer 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 in-depth market knowledge 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.
Omar owned a high value flat in Wellesbourne on the market with a lease of a few days over fifty eight years remaining. Omar informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Omar to exercise his statutory right. Omar procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2010 we were e-mailed by Dr R Carter who, having bought a studio apartment in Wellesbourne in February 2010. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Comparable premises in Wellesbourne with an extended lease were worth £184,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ended on 15 July 2078. Considering the 53 years left we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.
In 2013 we were phoned by Mr Michael Fournier who, having completed a basement flat in Wellesbourne in September 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparable residencies in Wellesbourne with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected yearly. The lease came to a finish on 26 March 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.