As the the remaining lease term of a Wide Open domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. The majority of flat owners in Wide Open will meet the qualifying criteria; however a lawyer should be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Wide Open with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Wide Open,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wide Open valuers.
Half a year ago Dylan, came perilously close to the 80-year threshold with the lease on his two bedroom apartment in Wide Open. In buying his property two decades ago, the length of the lease was of minimal bearing. Thankfully, he noticed he needed to take steps soon on a lease extension. Dylan extended the lease just in the nick of time in August. Dylan and the freeholder ultimately settled on sum of £5,000 . If he had missed the deadline, the amount would have increased by a minimum £1,050.
In 2013 we were contacted by Mr and Mrs. P Bertrand who, having moved into a one bedroom apartment in Wide Open in March 1996. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Wide Open with an extended lease were worth £183,600. The average amount of ground rent was £65 collected annually. The lease expired in 2082. Taking into account 57 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including fees.
Last Christmas we were contacted by Mr and Mrs. S Petit , who owned a ground floor apartment in Wide Open in June 2012. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical properties in Wide Open with a long lease were valued around £250,000. The mid-range amount of ground rent was £50 billed annually. The lease lapsed in 2093. Given that there were 68 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.