The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Wenvoe have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Wenvoe lease extension. Putting off the costs now simply escalates the amount you will ultimately have to pay to extend the lease.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Wenvoe,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wenvoe valuers.
Alfie was the the leasehold owner of a conversion flat in Wenvoe being sold with a lease of a few days over 61 years left. Alfie informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Alfie to invoke his statutory right. Alfie procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Ms Zoe André moved into a first floor flat in Wenvoe in June 2001. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Identical flats in Wenvoe with an extended lease were valued around £254,200. The average ground rent payable was £60 collected annually. The lease ran out on 8 September 2077. Taking into account 51 years remaining we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus legals.
Mrs C Bernard owned a studio flat in Wenvoe in June 2010. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Wenvoe with an extended lease were worth £210,600. The average ground rent payable was £45 collected quarterly. The lease concluded in 2088. Given that there were 62 years left we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of costs.