Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Wetherby. Inevitably, the term of lease remaining reduces over time. This may pass by relatively unnoticed when the property needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Wetherby have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. You should give careful deliberation before putting off your Wetherby lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Wetherby with over 100 years unexpired 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Coventry Building Society | 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 |
| 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. |
Using our service will provide you increased control over the value of your Wetherby leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jack was the the leasehold owner of a high value apartment in Wetherby being sold with a lease of a few days over 61 years remaining. Jack on an informal basis approached his landlord being a well known local-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 an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2012 we were e-mailed by Dr G Wood who, having took over the lease of a one bedroom flat in Wetherby in June 2001. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable flats in Wetherby with a long lease were valued around £168,800. The average amount of ground rent was £60 billed every twelve months. The lease ended in 2081. Taking into account 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.
Last month we were e-mailed by Ms Kelsey Fournier , who took over the lease of a garden apartment in Wetherby in March 2008. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Identical premises in Wetherby with a long lease were in the region of £235,200. The average ground rent payable was £45 collected per annum. The lease came to a finish in 2092. Considering the 66 years left we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.