There is no doubt about it a leasehold property in Wilsden is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Wilsden will meet the qualifying criteria; however a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Wilsden with over 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Wilsden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Milo owned a high value apartment in Wilsden on the market with a lease of fraction over 72 years remaining. Milo on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last Summer we were e-mailed by Dr Kelsey Brooks , who acquired a one bedroom apartment in Wilsden in September 2011. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical flats in Wilsden with an extended lease were in the region of £250,400. The average amount of ground rent was £65 invoiced monthly. The lease came to a finish on 22 August 2090. Given that there were 64 years left we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including fees.
Mr and Mrs. N André completed a garden apartment in Wilsden in February 1995. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative properties in Wilsden with a long lease were worth £189,000. The mid-range ground rent payable was £55 billed quarterly. The lease finished on 11 October 2079. Having 53 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.