There is no doubt about it a leasehold property in Willen is a wasting asset as a result of the shortening lease. Where the lease has, more than one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. Many flat owners in Willen will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Willen with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Chelsea 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Willen,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Willen valuers.
Harvey was the the leasehold owner of a high value apartment in Willen being marketed with a lease of a few days over sixty years remaining. Harvey informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Dr V Martinez purchased a basement flat in Willen in June 1997. The question was if we could approximate the price would be to extend the lease by a further 90 years. Similar homes in Willen with an extended lease were worth £257,800. The average ground rent payable was £65 collected annually. The lease ran out on 9 July 2091. Considering the 65 years outstanding we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including legals.
In 2014 we were e-mailed by Dr B Gray who, having moved into a purpose-built flat in Willen in January 2002. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative residencies in Willen with a long lease were worth £191,400. The mid-range amount of ground rent was £55 billed yearly. The lease came to a finish in 2080. Considering the 54 years left we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 not including expenses.