With a domestic leasehold property in Wilsden, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years left. Leasehold owners in Wilsden with a lease approaching 81 years left should seriously consider extending it as soon as possible. When a lease has under 80 years left, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Wilsden 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Wilsden can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Wilsden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the freeholder of her leasehold flat in Wilsden, Sarah started the lease extension process just as her lease was approaching the crucial 80-year threshold. The lease extension was finalised in October 2011. The landlord’s charges were negotiated to less than 600 GBP.
Last year we were e-mailed by Dr Toby Lefèvre , who acquired a one bedroom apartment in Wilsden in March 2001. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative homes in Wilsden with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease expired in 2104. Having 78 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.
In 2013 we were e-mailed by Mr and Mrs. B Petit who, having purchased a first floor flat in Wilsden in May 2004. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Similar homes in Wilsden with 100 year plus lease were valued about £267,600. The mid-range amount of ground rent was £65 collected annually. The lease ran out in 2093. Taking into account 67 years as a residual term we calculated the premium to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of professional charges.