The nearer a domestic lease in Wimborne nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Wimborne will qualify for this right; nevertheless a lawyer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Wimborne leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Leo, came very close to the eighty-year mark with the lease on his basement apartment in Wimborne. Having purchased his home 18 years previously, the lease term was of little significance. As luck would have it, he realised he would imminently be paying way over the odds for a lease extension. Leo was able to extend his lease just under the wire in April. Leo and the freeholder subsequently settled on an amount of £6,000 . If he had missed the deadline, the sum would have increased by at least £1,100.
Last month we were e-mailed by Mr and Mrs. S Richardson , who moved into a studio flat in Wimborne in May 2006. 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 with an extended lease were valued about £225,800. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed in 2085. Taking into account 60 years left we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 plus expenses.
In 2012 we were e-mailed by Mrs Zoe Young who, having bought a one bedroom apartment in Wimborne in May 2012. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Identical premises in Wimborne with a long lease were in the region of £210,000. The average ground rent payable was £50 billed annually. The lease lapsed on 17 November 2105. Given that there were 80 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.