The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Wimborne Minster can extend the lease for an additional 90 years under Leasehold Reform legislation. Do think carefully before delaying your Wimborne Minster lease extension. Putting off that expense now simply increases the price you will eventually be required to pay for a lease extension.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The lawyers that we work with undertake Wimborne Minster 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 lawyer we work with provide it.
Two years ago Alex, started to get close to the 80-year mark with the lease on his studio flat in Wimborne Minster. Having bought his flat two decades ago, the lease term was of no importance. by good luck, he recognised he would soon be paying an escalated premium for Extending the lease. Alex extended the lease just in the nick of time in January. Alex and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If the lease had dropped to less than 80 years, the amount would have increased by at least £1,125.
In 2010 we were contacted by Ms R Hill who, having bought a ground floor flat in Wimborne Minster in October 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Wimborne Minster with an extended lease were in the region of £206,200. The mid-range ground rent payable was £60 invoiced yearly. The lease lapsed on 9 May 2082. Taking into account 56 years left we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus legals.
Mr and Mrs. K White was assigned a lease of a one bedroom apartment in Wimborne Minster in May 2011. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable residencies in Wimborne Minster with a long lease were valued about £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated in 2102. Having 76 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.