Unfortunately that a Wellingborough residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Wellingborough property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term drops below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Wellingborough will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Wellingborough with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Wellingborough,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wellingborough valuers.
Off the back of unsuccessful discussions with the landlord of her garden apartment in Wellingborough, Natasha started the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction was concluded in October 2010. The freeholder’s costs were kept to an absolute minimum.
Last month we were contacted by Dr Nicole Bonnet , who moved into a one bedroom flat in Wellingborough in January 2002. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable residencies in Wellingborough with an extended lease were in the region of £240,600. The average ground rent payable was £60 billed annually. The lease expired on 9 October 2087. Given that there were 62 years unexpired we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.
Dr Dylan Rogers purchased a one bedroom flat in Wellingborough in June 2005. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Similar premises in Wellingborough with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 billed monthly. The lease expiry date was on 6 February 2076. Taking into account 51 years outstanding we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus professional charges.