Wennington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Wennington tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Wennington you really ought to see if your lease has between seventy and 90 years left. There are good reasons why a Wennington leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Wennington with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 conveyancer we work with provide it.
Following unsuccessful discussions with the freeholder of her one bedroom apartment in Wennington, Morgan started the lease extension process just as the lease was approaching the critical eighty-year threshold. The transaction was concluded in May 2014. The freeholder’s fees were negotiated to below 550 pounds.
Last Summer we were phoned by Mr and Mrs. I Flores , who bought a newly refurbished apartment in Wennington in June 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Wennington with 100 year plus lease were worth £201,200. The mid-range ground rent payable was £55 collected every twelve months. The lease ended on 7 April 2081. Given that there were 56 years remaining we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.
An example of a Lease Extension matter before the tribunal for a Wennington property 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 number of years remaining on the existing lease(s) was 76 years.