The re-sale value of a leasehold property in Wellingborough is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that all matters can be finalised ahead of the eighty year mark. Leasehold Reform legislation entitles Wellingborough qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Wellingborough with more than one hundred years outstanding 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 premises. In such circumstances there is often little to be gained by purchasing the reversionary interest 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Lease extensions in Wellingborough can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Wellingborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the freeholder of her basement flat in Wellingborough, Rebecca initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The transaction was concluded in March 2010. The landlord’s charges were kept to an absolute minimum.
Last August we were phoned by Dr O Petit , who acquired a basement apartment in Wellingborough in April 2002. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical flats in Wellingborough with a long lease were valued around £198,800. The mid-range ground rent payable was £55 billed yearly. The lease elapsed in 2081. Taking into account 55 years remaining we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of fees.
Last month we were contacted by Mr and Mrs. V Turner , who was assigned a lease of a studio flat in Wellingborough in October 2001. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative flats in Wellingborough with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected annually. The lease concluded in 2101. Taking into account 75 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.