The only way is down when it comes to Willen lease terms. Willen properties that have a residual term less than than eighty years will reduce in value even faster, and the cost to extend your lease will increase.
Leasehold residencies in Willen with more than one hundred years unexpired 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 premises. In such situations there is often little to be gained by buying the freehold 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Willen leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Finn, came precariously close to the eighty-year threshold with the lease on his ground floor flat in Willen. In buying his flat two decades ago, the unexpired term was of minimal relevance. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Finn extended the lease at the eleventh hour last January. Finn and the freeholder via the managing agents ultimately settled on sum of £6,000 . If the lease had dipped to less than 80 years, the price would have escalated by at least £925.
Dr Y Reed was assigned a lease of a basement flat in Willen in August 1997. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative homes in Willen with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed yearly. The lease expired in 2102. Having 77 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
Last month we were called by Dr Lewis Martínez , who purchased a purpose-built apartment in Willen in March 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Similar premises in Willen with an extended lease were worth £260,200. The mid-range amount of ground rent was £65 collected quarterly. The lease finished on 5 March 2091. Given that there were 66 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of expenses.