Wimborne Minster leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Wimborne Minster residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wimborne Minster you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Wimborne Minster with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Wimborne Minster,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wimborne Minster valuers.
Trailing protracted discussions with the landlord of her garden apartment in Wimborne Minster, Paige commenced the lease extension process just as her lease was nearing the critical 80-year mark. The legal work was finalised in February 2007. The landlord’s costs were restricted to less than 700 GBP.
Mr and Mrs. Y Thompson purchased a ground floor apartment in Wimborne Minster in July 2003. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparable homes in Wimborne Minster with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 collected annually. The lease ran out on 4 February 2086. Considering the 61 years unexpired we approximated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus expenses.
Last month we were phoned by Ms D Thomas , who completed a purpose-built apartment in Wimborne Minster in November 2002. The question was if we could approximate the price would be to extend the lease by ninety years. Comparable residencies in Wimborne Minster with a long lease were worth £171,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease concluded on 22 July 2075. Having 50 years remaining we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of legals.