When it comes to residential leasehold premises in Wirksworth, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Residents in Wirksworth with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has below 80 years left, under the current statute the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you increased control over the value of your Wirksworth leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.
Michael was the the leasehold proprietor of a conversion flat in Wirksworth being sold with a lease of just over 59 years unexpired. Michael informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Mr and Mrs. C Sharif who, having acquired a ground floor apartment in Wirksworth in September 1998. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar properties in Wirksworth with a long lease were in the region of £270,000. The average amount of ground rent was £55 collected quarterly. The lease came to a finish on 11 May 2099. Taking into account 74 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
In 2009 we were phoned by Dr Stanley Stewart who, having was assigned a lease of a purpose-built flat in Wirksworth in June 2006. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Wirksworth with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 billed per annum. The lease ran out on 4 November 2079. Having 54 years remaining we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.