Wilton 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 the lease gets more expensive. Most owners of residential leasehold property in Wilton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wilton you should check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Wilton flat owner 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 more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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 conveyancing solicitors that we work with handle Wilton 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 conveyancing solicitor we work with provide it.
In recent months Kyle, started to get close to the 80-year threshold with the lease on his purpose- built flat in Wilton. In buying his home two decades ago, the lease term was of little importance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Kyle extended the lease just in the nick of time in August. Kyle and the landlord eventually settled on an amount of £5,500 . If he not met the deadline, the figure would have become more costly by a minimum £1,050.
Last Winter we were phoned by Mr Jude Moore , who bought a purpose-built apartment in Wilton in March 2000. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Wilton with an extended lease were in the region of £235,200. The average amount of ground rent was £45 collected every twelve months. The lease ended in 2092. Taking into account 66 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Mrs Mollie Watson purchased a basement flat in Wilton in February 2010. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical homes in Wilton with an extended lease were in the region of £275,000. The average ground rent payable was £55 billed annually. The lease end date was in 2103. Considering the 77 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.