Wellington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Wellington residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wellington you should check if your lease has between seventy and ninety years left. There are compelling reasons why a Wellington leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Wellington with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Lease extensions in Wellington can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 Wellington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathaniel owned a high value flat in Wellington being sold with a lease of a little over 72 years outstanding. Nathaniel informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to invoke his statutory right. Nathaniel obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were contacted by Dr Jennifer Sharif who, having acquired a first floor flat in Wellington in November 1998. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical flats in Wellington with an extended lease were in the region of £255,000. The average ground rent payable was £50 invoiced yearly. The lease concluded on 4 June 2097. Considering the 71 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
In 2012 we were phoned by Dr Holly David who, having completed a one bedroom flat in Wellington in May 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical residencies in Wellington with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 billed every twelve months. The lease lapsed in 2077. Given that there were 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of expenses.