With a domestic leasehold property in Wimborne Minster, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Leasehold owners in Wimborne Minster with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years left, under the current statute the landlord is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Wimborne Minster with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wimborne Minster can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Wimborne Minster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kai was the the leasehold proprietor of a high value apartment in Wimborne Minster being sold with a lease of fraction over fifty eight years outstanding. Kai informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Kai to invoke his statutory right. Kai procured expert advice and secured satisfactory deal informally and sell the property.
Mr Alfie Díaz took over the lease of a one bedroom flat in Wimborne Minster in May 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Wimborne Minster with a long lease were valued around £191,400. The average amount of ground rent was £55 collected every twelve months. The lease ran out on 13 March 2080. Considering the 54 years left we estimated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus expenses.
Last Autumn we were called by Mr and Mrs. T Thomas , who purchased a one bedroom flat in Wimborne Minster in October 1998. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Wimborne Minster with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease elapsed in 2100. Having 74 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.