Unfortunately that a Wheatley residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Wheatley property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term slips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Wheatley will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Wheatley leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harry was the the leasehold proprietor of a high value flat in Wheatley being marketed with a lease of a little over sixty years remaining. Harry informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Mr and Mrs. F Wright took over the lease of a one bedroom apartment in Wheatley in May 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar homes in Wheatley with a long lease were in the region of £275,000. The average amount of ground rent was £55 collected annually. The lease terminated on 5 July 2102. Given that there were 77 years remaining we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
In 2010 we were approached by Mrs Isobel Kelly who, having owned a garden flat in Wheatley in July 2000. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative homes in Wheatley with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed on 22 August 2082. Given that there were 57 years outstanding we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.