Wheathampstead leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Wheathampstead residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wheathampstead you should see if your lease has between seventy and 90 years left. There are good reasons why a Wheathampstead leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service will provide you enhanced control over the value of your Wheathampstead leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the freeholder of her one bedroom apartment in Wheathampstead, Yasmin commenced the lease extension process as the 80 year mark was fast advancing. The lease extension was concluded in February 2007. The freeholder’s costs were kept to an absolute minimum.
Last month we were contacted by Mr and Mrs. P Miller , who completed a one bedroom flat in Wheathampstead in June 1998. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical premises in Wheathampstead with a long lease were in the region of £174,200. The average amount of ground rent was £55 collected quarterly. The lease came to a finish on 16 September 2077. Taking into account 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.
Last Winter we were approach by Ms F Hill , who completed a first floor flat in Wheathampstead in August 2005. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Wheathampstead with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease ended in 2097. Considering the 71 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.