Wide Open leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Wide Open will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and steps to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Wide Open with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Wide Open 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 conveyancing solicitor we work with provide it.
Tyler owned a high value apartment in Wide Open on the market with a lease of a little over fifty eight years outstanding. Tyler on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Tyler to exercise his statutory right. Tyler procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Mr and Mrs. H Thomas moved into a purpose-built apartment in Wide Open in October 1999. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative properties in Wide Open with a long lease were worth £280,000. The average amount of ground rent was £55 billed quarterly. The lease expired on 22 September 2104. Having 78 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
Mr and Mrs. F Rodríguez completed a one bedroom apartment in Wide Open in January 2006. The question was if we could approximate the premium would be to extend the lease by 90 years. Identical properties in Wide Open with a long lease were in the region of £191,000. The average ground rent payable was £65 collected yearly. The lease lapsed on 17 June 2084. Considering the 58 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of legals.