Wenvoe leases on residential properties are gradually diminishing 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 investigate 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 remaining should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Chelsea 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Wenvoe,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wenvoe valuers.
Milo owned a 2 bedroom apartment in Wenvoe on the market with a lease of a few days over 72 years left. Milo on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
In 2014 we were contacted by Dr E Jones who, having owned a studio flat in Wenvoe in May 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Wenvoe with an extended lease were in the region of £218,000. The average ground rent payable was £45 collected quarterly. The lease ran out in 2088. Given that there were 63 years left we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of legals.
Last August we were approach by Mr and Mrs. J Rivera , who bought a basement apartment in Wenvoe in May 2008. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Wenvoe with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 collected quarterly. The lease elapsed on 25 November 2099. Considering the 74 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.