For those whose Wendover flat is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Wendover leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Finn was the the leasehold owner of a studio flat in Wendover on the market with a lease of a few days over sixty years left. Finn informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Finn to invoke his statutory right. Finn obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Summer we were contacted by Dr E Wright , who took over the lease of a one bedroom apartment in Wendover in October 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical premises in Wendover with an extended lease were valued about £280,000. The average ground rent payable was £45 billed every twelve months. The lease concluded on 17 May 2095. Taking into account 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.
Mr Eli Wood completed a ground floor flat in Wendover in January 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable homes in Wendover with a long lease were worth £223,400. The average amount of ground rent was £60 billed per annum. The lease ran out in 2084. Given that there were 59 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of costs.