The nearer a residential lease in Willenhall nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 99 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Willenhall will meet the qualifying criteria; nevertheless a conveyancer will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Willenhall with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Willenhall,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Willenhall valuers.
Trailing unsuccessful discussions with the freeholder of her studio apartment in Willenhall, Leah started the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was concluded in July 2015. The landlord’s charges were negotiated to below 500 pounds.
Last Christmas we were approach by Ms Molly Dupont , who moved into a ground floor apartment in Willenhall in September 1996. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Willenhall with an extended lease were valued around £183,600. The average ground rent payable was £65 collected per annum. The lease ended on 2 August 2083. Taking into account 57 years unexpired we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of expenses.
Last July we were called by Dr E Miller , who took over the lease of a purpose-built flat in Willenhall in June 2003. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable properties in Willenhall with a long lease were valued about £245,000. The mid-range ground rent payable was £50 billed yearly. The lease ended on 7 August 2094. Taking into account 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.