When it comes to domestic leasehold premises in Wendover, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years left. Anyone in Wendover with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the current statute the landlord can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wendover can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Wendover lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Benjamin, came very close to the 80-year threshold with the lease on his first floor flat in Wendover. In buying his property two decades ago, the lease term was of minimal importance. by good luck, he recognised he would imminently be paying an inflated amount for a lease extension. Benjamin was able to extend his lease just ahead of time in July. Benjamin and the freeholder via the managing agents eventually agreed on the final figure of £6,000 . If the lease had dropped lower than eighty years, the figure would have become more costly by a minimum £850.
Last Summer we were phoned by Dr Jayden Khan , who was assigned a lease of a ground floor apartment in Wendover in November 2009. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Wendover with a long lease were worth £225,800. The mid-range ground rent payable was £60 collected every twelve months. The lease terminated on 17 May 2086. Given that there were 60 years outstanding we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus fees.
Last year we were approach by Dr Dexter Nelson , who owned a garden apartment in Wendover in October 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Wendover with an extended lease were worth £210,000. The mid-range ground rent payable was £50 billed every twelve months. The lease termination date was on 13 July 2106. Taking into account 80 years left we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.