Unfortunately that a Wenvoe residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Wenvoe property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Wenvoe will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with handle 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.
Harry owned a high value apartment in Wenvoe on the market with a lease of a few days over 61 years outstanding. Harry on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Harry to exercise his statutory right. Harry procured expert advice and secured satisfactory deal informally and readily saleable.
In 2013 we were called by Mr and Mrs. B Moreau who, having acquired a garden apartment in Wenvoe in February 2009. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Similar premises in Wenvoe with 100 year plus lease were valued around £264,000. The mid-range ground rent payable was £60 invoiced monthly. The lease ended in 2079. Having 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of professional charges.
Mrs B Fournier bought a basement apartment in Wenvoe in March 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Similar premises in Wenvoe with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 billed annually. The lease lapsed on 2 July 2090. Considering the 64 years remaining we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 not including legals.