Wilford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Wilford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wilford you must see if your lease has between 70 and ninety years left. There are good reasons why a Wilford leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Wilford 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.
Edward was the the leasehold owner of a studio flat in Wilford on the market with a lease of fraction over sixty years unexpired. Edward on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2014 we were contacted by Dr Arthur Hall who, having purchased a basement apartment in Wilford in March 1999. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparative properties in Wilford with 100 year plus lease were in the region of £184,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease finished on 7 January 2079. Having 53 years unexpired we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
In 2011 we were e-mailed by Mrs E James who, having purchased a ground floor flat in Wilford in March 2008. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Wilford with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected per annum. The lease ended in 2099. Considering the 73 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.