When it comes to domestic leasehold premises in Wem, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years remaining. Anyone in Wem with a lease nearing 81 years remaining should seriously consider extending it without delay. When a lease has below eighty years outstanding, under the current statute the freeholder can calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Wem 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Wem 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 conveyancing solicitor we work with provide it.
Following lengthy discussions with the freeholder of her one bedroom flat in Wem, Sarah commenced the lease extension process as the 80 year mark was swiftly nearing. The lease extension was concluded in September 2010. The landlord’s charges were kept to an absolute minimum.
Ms D Bailey took over the lease of a garden flat in Wem in July 1995. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable residencies in Wem with 100 year plus lease were valued about £191,400. The mid-range ground rent payable was £55 collected yearly. The lease ended in 2079. Having 54 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of costs.
Mr and Mrs. O Miller bought a recently refurbished flat in Wem in July 1997. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Wem with a long lease were worth £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease concluded on 8 September 2099. Considering the 74 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.