The closer a residential lease in Wellingborough gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. The majority of flat owners in Wellingborough will qualify for this right; that being said a conveyancer should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Wellingborough with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Wellingborough leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jackson was the the leasehold proprietor of a conversion apartment in Wellingborough being marketed with a lease of a few days over sixty years left. Jackson informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last February we were called by Mr and Mrs. K Rogers , who owned a one bedroom apartment in Wellingborough in October 2010. The question was if we could approximate the price would be for a ninety year lease extension. Similar flats in Wellingborough with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish on 8 November 2094. Having 69 years unexpired we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
Mr Isaac Clark owned a recently refurbished flat in Wellingborough in April 2009. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical flats in Wellingborough with an extended lease were valued around £216,000. The average amount of ground rent was £60 collected annually. The lease ran out in 2083. Given that there were 58 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.