It’s a harsh truth that a Wennington residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Wennington property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Wennington will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Wennington leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Nathan, came very close to the 80-year threshold with the lease on his garden flat in Wennington. Having purchased his flat two decades ago, the lease term was of little concern. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Nathan arranged for a lease extension just ahead of time last July. Nathan and the freeholder via the managing agents eventually agreed on sum of £6,000 . If he not met the deadline, the price would have escalated by at least £975.
In 2010 we were called by Ms Niamh Reed who, having completed a garden apartment in Wennington in June 2003. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical flats in Wennington with a long lease were worth £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed on 17 April 2106. Considering the 80 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
An example of a Lease Extension matter before the tribunal for a Wennington residence 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 related to 13 flats. The unexpired residue of the current lease was 76 years.