The re-sale value of a leasehold property in Wilton is impacted by how long the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be finalised in advance of the eighty year cut off point. Current legislation entitles Wilton qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Wilton with more than one hundred years outstanding 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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. |
Lease extensions in Wilton can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
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 procuring Wilton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful negotiations with the freeholder of her one bedroom flat in Wilton, Ellie commenced the lease extension process as the eighty year deadline was quickly advancing. The transaction completed in November 2013. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were called by Mrs Y Ali , who purchased a purpose-built apartment in Wilton in January 2001. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Similar flats in Wilton with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 28 May 2105. Given that there were 80 years outstanding we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
In 2010 we were phoned by Mr M Richardson who, having completed a ground floor flat in Wilton in November 2003. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative premises in Wilton with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease elapsed on 28 June 2085. Having 60 years outstanding we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus fees.