It’s a harsh certainty that a Wilton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Wilton property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be due. Most flat owners in Wilton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Wilton 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
Retaining our service will provide you increased control over the value of your Wilton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Riley was the the leasehold owner of a studio apartment in Wilton on the market with a lease of a few days over 72 years left. Riley informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Riley to exercise his statutory right. Riley procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2010 we were approached by Dr H Simon who, having acquired a basement flat in Wilton in April 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable flats in Wilton with a long lease were valued about £265,000. The average amount of ground rent was £50 billed every twelve months. The lease elapsed in 2099. Having 73 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Last Spring we were contacted by Ms E Thomas , who completed a one bedroom flat in Wilton in October 1997. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Wilton with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 billed monthly. The lease lapsed on 14 January 2079. Considering the 53 years unexpired we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including fees.