Wilberfoss leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Wilberfoss residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wilberfoss you really ought to see if your lease has between seventy and ninety years left. There are good reasons why a Wilberfoss leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Wilberfoss 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 conveyancer we work with provide it.
Luca was the the leasehold proprietor of a 2 bedroom flat in Wilberfoss on the market with a lease of a little over sixty years outstanding. Luca informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr and Mrs. J Martínez purchased a one bedroom apartment in Wilberfoss in October 1996. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical residencies in Wilberfoss with an extended lease were in the region of £280,000. The average ground rent payable was £55 collected monthly. The lease concluded on 13 October 2103. Given that there were 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.
Last Christmas we were e-mailed by Mr and Mrs. V Richardson , who moved into a purpose-built apartment in Wilberfoss in January 2006. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Identical residencies in Wilberfoss with 100 year plus lease were valued around £186,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease concluded on 15 September 2083. Taking into account 58 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 not including legals.