Wenvoe 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 the lease becomes more expensive. Most owners of residential leasehold property in Wenvoe enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wenvoe you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Wenvoe flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay
Leasehold premises in Wenvoe with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Wenvoe 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.
Ethan was the the leasehold owner of a high value flat in Wenvoe on the market with a lease of a little over sixty years remaining. Ethan informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2011 we were e-mailed by Dr Hannah Carter who, having bought a first floor flat in Wenvoe in February 1997. The question was if we could estimate the price could be for a 90 year lease extension. Similar properties in Wenvoe with an extended lease were in the region of £200,800. The average amount of ground rent was £65 invoiced annually. The lease expiry date was in 2085. Having 60 years outstanding we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of fees.
In 2013 we were phoned by Ms Aimee Morel who, having was assigned a lease of a studio apartment in Wenvoe in April 2010. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable residencies in Wenvoe with an extended lease were worth £260,000. The average ground rent payable was £50 billed every twelve months. The lease ran out on 26 March 2096. Taking into account 71 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.