Wheatley leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease drops below 80 years - otherwise a higher premium will be due. Leasehold owners in Wheatley will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure Wheatley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jasper owned a conversion flat in Wheatley on the market with a lease of fraction over 72 years left. Jasper informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were approached by Mrs R Roberts who, having acquired a purpose-built flat in Wheatley in June 2008. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Identical premises in Wheatley with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced annually. The lease finished on 2 July 2100. Having 74 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Last Winter we were contacted by Ms Sophia Davis , who purchased a one bedroom apartment in Wheatley in February 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical flats in Wheatley with 100 year plus lease were valued about £166,400. The average ground rent payable was £60 billed monthly. The lease ended on 11 April 2080. Taking into account 54 years remaining we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.