Wilmslow leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Wilmslow enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wilmslow you must investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Wilmslow leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Wilmslow leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her first floor flat in Wilmslow, Elizabeth commenced the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension completed in October 2007. The landlord’s costs were restricted to under 600 GBP.
In 2011 we were e-mailed by Mr and Mrs. H Davis who, having was assigned a lease of a studio flat in Wilmslow in September 2011. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Comparative premises in Wilmslow with a long lease were worth £285,000. The mid-range ground rent payable was £55 collected quarterly. The lease elapsed on 23 January 2104. Taking into account 79 years left we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
Mr Harrison Reed was assigned a lease of a garden flat in Wilmslow in April 2010. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Similar properties in Wilmslow with a long lease were worth £193,400. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2084. Given that there were 59 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of legals.