With a long leasehold property in Wenvoe, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Leasehold owners in Wenvoe with a lease nearing 81 years remaining should seriously consider extending it without delay. When a lease has under 80 years left, under the relevant legislation the freeholder can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Wenvoe with in excess of one hundred years outstanding on the lease are often 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 upside in purchasing the reversionary interest 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Engaging our service gives you better control over the value of your Wenvoe leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her ground floor flat in Wenvoe, Isobel commenced the lease extension process just as her lease was nearing the critical eighty-year threshold. The transaction was finalised in June 2013. The landlord’s costs were restricted to below 700 pounds.
Last Winter we were phoned by Ms Grace Davies , who owned a ground floor apartment in Wenvoe in May 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Wenvoe with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish in 2096. Having 70 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 plus fees.
Mr and Mrs. T Morgan bought a purpose-built flat in Wenvoe in June 1995. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative residencies in Wenvoe with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 invoiced every twelve months. The lease terminated on 19 August 2076. Taking into account 50 years outstanding we approximated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus professional charges.