Wellingborough leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher amount will be payable. Leasehold owners in Wellingborough will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Wellingborough with more than one hundred years outstanding on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 will provide 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 wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Zachary was the the leasehold owner of a studio flat in Wellingborough on the market with a lease of fraction over 72 years outstanding. Zachary informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to invoke his statutory right. Zachary procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last Autumn we were phoned by Mr Andrew Stewart , who purchased a studio apartment in Wellingborough in January 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative premises in Wellingborough with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 billed monthly. The lease came to a finish in 2098. Having 72 years unexpired we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including legals.
In 2013 we were called by Mr Ben Miller who, having bought a recently refurbished flat in Wellingborough in April 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative homes in Wellingborough with an extended lease were valued around £233,200. The average ground rent payable was £60 collected per annum. The lease expired in 2087. Given that there were 61 years unexpired we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 not including professional charges.