Wilberfoss leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes 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 must see if your lease has between seventy and ninety years remaining. There are good reasons why a Wilberfoss flat owner with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Wilberfoss with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Wilberfoss leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Arthur was the the leasehold proprietor of a conversion apartment in Wilberfoss being sold with a lease of a little over 72 years left. Arthur on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Last February we were e-mailed by Mr K Martinez , who took over the lease of a one bedroom flat in Wilberfoss in May 2010. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical homes in Wilberfoss with a long lease were valued about £166,400. The average amount of ground rent was £60 billed monthly. The lease expired on 5 October 2080. Given that there were 54 years left we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus expenses.
In 2013 we were e-mailed by Ms Rachel Gunderson who, having was assigned a lease of a one bedroom apartment in Wilberfoss in January 2010. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative flats in Wilberfoss with a long lease were in the region of £227,800. The average amount of ground rent was £45 collected quarterly. The lease ended in 2091. Having 65 years remaining we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.