There is no doubt about it a leasehold property in Wide Open is a wasting asset as a result of the shortening lease. Where the lease has, beyond 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner as opposed to later. Many flat owners in Wide Open will qualify for this right; that being said a conveyancing solicitor will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Wide Open with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Wide Open can be a difficult process. We recommend you procure guidance from a lawyer 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 a wealth of experience dealing with Wide Open lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy correspondence with the landlord of her garden flat in Wide Open, Georgina initiated the lease extension process as the 80 year mark was swiftly approaching. The legal work completed in June 2015. The landlord’s charges were kept to an absolute minimum.
In 2009 we were phoned by Dr P Leroy who, having purchased a ground floor apartment in Wide Open in July 1999. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Comparable homes in Wide Open with a long lease were in the region of £225,400. The average ground rent payable was £45 invoiced annually. The lease lapsed on 19 March 2090. Having 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of fees.
Last year we were contacted by Mr Dylan Hall , who acquired a ground floor apartment in Wide Open in October 1998. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar flats in Wide Open with an extended lease were worth £270,000. The average amount of ground rent was £55 collected every twelve months. The lease lapsed on 10 July 2101. Taking into account 75 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.