There is no doubt about it a leasehold flat or house in Wennington is a wasting asset as a result of the shortening lease. Where the residual term has, over one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Wennington will meet the qualifying criteria; that being said a conveyancing solicitor will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Wennington 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.
18 months ago Isaac, started to get close to the eighty-year threshold with the lease on his first floor flat in Wennington. In buying his flat 18 years ago, the length of the lease was of little concern. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Isaac extended the lease just in the nick of time last July. Isaac and the freeholder via the management company eventually settled on sum of £5,000 . If the lease had slid below 80 years, the sum would have gone up by at least £950.
Last Autumn we were called by Dr Seth Leroy , who owned a studio apartment in Wennington in May 1998. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative flats in Wennington with an extended lease were worth £174,200. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed in 2076. Taking into account 51 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.
An example of a Lease Extension case for a Wennington premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The remaining number of years on the lease was 76 years.