Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Wigston. Clearly, the term of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Wigston have the legal entitlement to extend the lease for an additional 90 years under statute. Do give careful deliberation before putting off your Wigston lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Lease extensions in Wigston can be a difficult process. We recommend you secure 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 in-depth market knowledge procuring Wigston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Luke, came seriously close to the 80-year threshold with the lease on his ground floor apartment in Wigston. Having purchased his property 19 years previously, the unexpired term was of little concern. Fortunately, he noticed he needed to take steps soon on Extending the lease. Luke was able to extend his lease at the eleventh hour last September. Luke and the freeholder via the managing agents eventually agreed on the final figure of £6,000 . If the lease had dropped lower than 80 years, the sum would have escalated by a minimum £1,100.
Ms Morgan Peterson bought a first floor apartment in Wigston in September 2002. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable flats in Wigston with a long lease were valued around £235,200. The average amount of ground rent was £45 collected yearly. The lease ended on 14 October 2092. Given that there were 66 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.
In 2014 we were contacted by Mr and Mrs. K Roberts who, having completed a basement apartment in Wigston in October 2006. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar properties in Wigston with a long lease were valued around £275,000. The average amount of ground rent was £55 collected yearly. The lease finished in 2103. Taking into account 77 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.