The market value of Wingate leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties in Wingate with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Wingate leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Joseph owned a 2 bedroom apartment in Wingate being sold with a lease of a little over 61 years remaining. Joseph informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2011 we were phoned by Dr Jackson Walker who, having acquired a recently refurbished flat in Wingate in October 1996. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Wingate with a long lease were valued about £280,000. The average ground rent payable was £45 collected per annum. The lease elapsed in 2095. Considering the 70 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
In 2010 we were approached by Mr J Allen who, having completed a garden apartment in Wingate in February 2012. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Wingate with an extended lease were in the region of £223,400. The average amount of ground rent was £60 billed per annum. The lease ran out in 2084. Taking into account 59 years unexpired we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 not including professional charges.