For those whose Wells flat is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold premises in Wells with over 100 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Halifax | |
| Santander | |
| Skipton Building Society |
The conveyancing solicitors that we work with undertake Wells lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of eight months of unsuccessful discussions with the landlord of her studio apartment in Wells, Jennifer initiated the lease extension process as the 80 year mark was quickly nearing. The legal work was concluded in July 2008. The freeholder’s charges were restricted to about five hundred pounds.
Dr F Richardson was assigned a lease of a one bedroom flat in Wells in May 2007. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical properties in Wells with a long lease were valued around £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease elapsed on 25 June 2102. Taking into account 76 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Ms K Martinez acquired a basement flat in Wells in May 2002. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar homes in Wells with a long lease were valued around £173,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2081. Given that there were 55 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.