It’s a harsh certainty that a Wilsden residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Wilsden property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Wilsden will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
The conveyancers that we work with undertake 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 conveyancer we work with provide it.
Theo owned a conversion apartment in Wilsden on the market with a lease of a few days over 61 years outstanding. Theo on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last year we were phoned by Mr and Mrs. S Gómez , who took over the lease of a basement apartment in Wilsden in February 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in Wilsden with a long lease were worth £191,400. The average ground rent payable was £55 billed monthly. The lease finished in 2079. Taking into account 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 plus legals.
Mr and Mrs. F Green owned a one bedroom apartment in Wilsden in June 2008. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Similar residencies in Wilsden with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease ran out on 23 March 2099. Taking into account 74 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.