Wheatley 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. The majority of owners of residential leasehold property in Wheatley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wheatley you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 |
| 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. |
| Yorkshire 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. |
Lease extensions in Wheatley can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Wheatley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago James, came seriously close to the eighty-year threshold with the lease on his garden flat in Wheatley. In buying his flat 18 years ago, the lease term was of minimal bearing. As luck would have it, he realised he would soon be paying an inflated amount for Extending the lease. James arranged for a lease extension at the eleventh hour in April. James and the landlord who owned the flat above in the end settled on an amount of £5,500 . If the lease had slid below eighty years, the figure would have increased by a minimum £1,050.
In 2010 we were contacted by Ms O Hill who, having moved into a one bedroom apartment in Wheatley in January 2012. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Wheatley with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease lapsed on 3 February 2098. Having 72 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. C Clarke bought a one bedroom flat in Wheatley in August 2006. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Wheatley with an extended lease were in the region of £256,600. The mid-range ground rent payable was £60 billed annually. The lease elapsed in 2078. Having 52 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus professional charges.