Wirksworth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Wirksworth residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wirksworth you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Wirksworth with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a freeholder in Wirksworth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wirksworth valuers.
Off the back of unsuccessful negotiations with the freeholder of her first floor flat in Wirksworth, Chelsea started the lease extension process just as the lease was approaching the critical eighty-year threshold. The lease extension was concluded in July 2011. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were e-mailed by Mrs W Brown who, having completed a studio flat in Wirksworth in June 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Wirksworth with a long lease were worth £242,600. The mid-range amount of ground rent was £45 billed monthly. The lease finished in 2092. Given that there were 67 years left we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of expenses.
Mr and Mrs. E Edwards bought a recently refurbished flat in Wirksworth in March 2002. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative homes in Wirksworth with an extended lease were worth £280,000. The mid-range ground rent payable was £55 collected every twelve months. The lease terminated on 25 January 2103. Having 78 years outstanding we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.