When it comes to residential leasehold premises in Wenvoe, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than 80 years left. Leasehold owners in Wenvoe with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under eighty years outstanding, under the current statute the freeholder can calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
The conveyancers that we work with undertake 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.
Oliver was the the leasehold proprietor of a high value flat in Wenvoe being marketed with a lease of fraction over fifty eight years left. Oliver on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Oliver to exercise his statutory right. Oliver procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last Autumn we were called by Ms Hannah Norbert , who purchased a newly refurbished flat in Wenvoe in October 2006. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable flats in Wenvoe with a long lease were valued around £191,000. The average ground rent payable was £65 invoiced yearly. The lease lapsed on 11 October 2084. Considering the 58 years left we approximated the premium to the landlord to extend the lease to be within £23,800 and £27,400 not including costs.
Dr D Turner took over the lease of a studio flat in Wenvoe in June 1997. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative homes in Wenvoe with a long lease were worth £250,000. The mid-range ground rent payable was £50 billed monthly. The lease finished on 21 September 2095. Taking into account 69 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.