The market value of a leasehold property in Wheatley depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed in advance of the 80 year cut off point. Leasehold Reform legislation entitles Wheatley qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Wheatley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wheatley valuers.
Aarav was the the leasehold owner of a studio apartment in Wheatley being marketed with a lease of just over 72 years left. Aarav on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Aarav to exercise his statutory right. Aarav procured expert advice and secured satisfactory deal informally and readily saleable.
In 2013 we were e-mailed by Mr and Mrs. V Vincent who, having bought a basement apartment in Wheatley in May 2010. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Identical premises in Wheatley with an extended lease were in the region of £264,000. The average amount of ground rent was £60 invoiced quarterly. The lease ran out in 2078. Having 53 years outstanding we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of legals.
Last Autumn we were approach by Mr and Mrs. W Green , who was assigned a lease of a ground floor apartment in Wheatley in November 2004. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Wheatley with an extended lease were valued around £225,400. The average amount of ground rent was £45 billed per annum. The lease terminated in 2089. Taking into account 64 years as a residual term we estimated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of costs.