The re-sale value of a leasehold property in Wilford is impacted by how long the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised prior to the eighty year cut off point. Leasehold Reform legislation entitles Wilford qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you better control over the value of your Wilford leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Rory, came seriously close to the eighty-year mark with the lease on his garden flat in Wilford. Having bought his home 19 years ago, the length of the lease was of minimal concern. by good luck, he became aware that he needed to take action soon on a lease extension. Rory arranged for a lease extension just under the wire in August. Rory and the freeholder subsequently agreed on a premium of £5,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £1,025.
In 2013 we were contacted by Mr and Mrs. J Taylor who, having bought a basement flat in Wilford in September 1999. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable properties in Wilford with a long lease were in the region of £250,400. The average amount of ground rent was £65 invoiced yearly. The lease expired on 28 September 2089. Given that there were 64 years remaining we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus professional charges.
Ms Y Wilson was assigned a lease of a ground floor flat in Wilford in April 2003. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Wilford with 100 year plus lease were worth £191,400. The mid-range ground rent payable was £55 collected yearly. The lease expired on 2 October 2079. Considering the 54 years left we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including expenses.