When it comes to domestic leasehold property in Wendover, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years left. Anyone in Wendover with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has under 80 years remaining, under the relevant Act the freeholder can calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Wendover with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The conveyancers that we work with handle Wendover 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 unsuccessful correspondence with the freeholder of her first floor flat in Wendover, Amber commenced the lease extension process as the 80 year deadline was rapidly approaching. The legal work completed in July 2006. The landlord’s fees were kept to an absolute minimum.
In 2014 we were called by Mr and Mrs. J Thompson who, having owned a first floor apartment in Wendover in January 2012. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparable premises in Wendover with an extended lease were in the region of £267,600. The average amount of ground rent was £65 billed annually. The lease concluded on 17 July 2092. Taking into account 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus professional charges.
Last Winter we were e-mailed by Mr Archie Nelson , who bought a one bedroom apartment in Wendover in October 1996. The question was if we could approximate the premium would be to prolong the lease by an additional years. Similar premises in Wendover with 100 year plus lease were worth £206,200. The average ground rent payable was £55 invoiced annually. The lease expiry date was in 2081. Given that there were 56 years left we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.