Wingate leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Wingate will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service will provide you increased control over the value of your Wingate leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jake owned a conversion flat in Wingate on the market with a lease of just over fifty eight years outstanding. Jake on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jake to invoke his statutory right. Jake obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2013 we were called by Dr Mollie Walker who, having took over the lease of a recently refurbished flat in Wingate in August 2007. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar homes in Wingate with a long lease were worth £205,000. The mid-range ground rent payable was £50 collected per annum. The lease end date was on 24 April 2105. Given that there were 79 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Mr and Mrs. T Robinson was assigned a lease of a one bedroom apartment in Wingate in October 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Similar premises in Wingate with an extended lease were worth £275,000. The average amount of ground rent was £65 invoiced per annum. The lease ended in 2094. Considering the 68 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.