Wheatley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Wheatley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wheatley you should see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Wheatley flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Wheatley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wheatley valuers.
Teddy was the the leasehold proprietor of a high value apartment in Wheatley being sold with a lease of a little over fifty eight years unexpired. Teddy on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2010 we were contacted by Ms Holly Khan who, having was assigned a lease of a recently refurbished flat in Wheatley in November 1999. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar flats in Wheatley with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded on 16 May 2105. Taking into account 79 years unexpired we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.
In 2009 we were approached by Dr Alice Lewis who, having owned a garden apartment in Wheatley in August 2010. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparative homes in Wheatley with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced monthly. The lease ended on 23 August 2085. Given that there were 59 years unexpired we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including legals.