Wigston leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher amount will be payable. Flat owners in Wigston will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Wigston with over 100 years left 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 conveyancers that we work with undertake Wigston 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 lawyer we work with provide it.
Off the back of unsuccessful discussions with the freeholder of her garden apartment in Wigston, Danielle started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction was finalised in March 2013. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. G Evans bought a purpose-built apartment in Wigston in September 2001. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative homes in Wigston with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 invoiced annually. The lease concluded on 6 February 2089. Having 64 years outstanding we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus expenses.
Last month we were e-mailed by Mr and Mrs. E Smith , who purchased a garden flat in Wigston in January 1996. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar residencies in Wigston with a long lease were worth £270,000. The mid-range ground rent payable was £55 collected yearly. The lease concluded on 21 January 2100. Taking into account 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.