With a residential leasehold premises in Wingate, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years remaining. Anyone in Wingate with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. When the lease term has below eighty years left, under the relevant legislation the landlord can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancers that we work with handle Wingate 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.
In the wake of eight months of unsuccessful negotiations with the freeholder of her garden flat in Wingate, Rhiannon initiated the lease extension process as the 80 year threshold was rapidly advancing. The legal work completed in April 2008. The landlord’s fees were restricted to below 450 pounds.
Mr and Mrs. K Green acquired a studio flat in Wingate in October 2012. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative homes in Wingate with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 invoiced every twelve months. The lease ran out in 2093. Taking into account 67 years outstanding we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of legals.
In 2012 we were phoned by Mr and Mrs. Y Hernández who, having purchased a one bedroom flat in Wingate in July 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar residencies in Wingate with a long lease were worth £206,200. The average amount of ground rent was £60 billed per annum. The lease lapsed on 20 January 2082. Given that there were 56 years left we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus expenses.