Chances are that where you own a flat in Wem you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Wem leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the landlord of her one bedroom apartment in Wem, Jordan started the lease extension process as the 80 year mark was fast nearing. The transaction completed in May 2010. The freeholder’s fees were restricted to below 500 pounds.
Mr and Mrs. G García owned a first floor apartment in Wem in November 1996. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable homes in Wem with 100 year plus lease were in the region of £265,200. The average ground rent payable was £65 invoiced every twelve months. The lease expired in 2091. Taking into account 66 years left we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus fees.
Mr and Mrs. W Moreau purchased a first floor apartment in Wem in September 1995. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparative properties in Wem with an extended lease were valued around £198,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease came to a finish on 6 March 2080. Taking into account 55 years remaining we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.