Unfortunately that a Wingate residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Wingate property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Wingate will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Wingate 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.
After lengthy negotiations with the landlord of her garden flat in Wingate, Kirsty started the lease extension process as the 80 year mark was quickly nearing. The transaction completed in July 2015. The landlord’s fees were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. K Sánchez who, having owned a recently refurbished apartment in Wingate in January 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Wingate with an extended lease were valued around £290,000. The average amount of ground rent was £45 collected every twelve months. The lease ended in 2098. Given that there were 72 years as a residual term we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus expenses.
In 2009 we were approached by Dr S Leroy who, having owned a one bedroom apartment in Wingate in May 2007. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Similar homes in Wingate with an extended lease were valued about £233,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ended in 2087. Considering the 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of legals.