The closer a domestic lease in Wirksworth gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 125 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Wirksworth will meet the qualifying criteria; that being said a conveyancing solicitor will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Wirksworth with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective 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 experience and the close ties they enjoy with Wirksworth valuers.
Edward was the the leasehold proprietor of a studio flat in Wirksworth being sold with a lease of fraction over sixty years remaining. Edward informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Edward to invoke his statutory right. Edward obtained 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.
Last Winter we were called by Mrs Jade Bernard , who bought a one bedroom flat in Wirksworth in June 1996. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical premises in Wirksworth with an extended lease were worth £285,000. The average amount of ground rent was £55 billed yearly. The lease ended on 19 September 2104. Given that there were 79 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.
Last Christmas we were e-mailed by Mr Ollie Green , who acquired a garden apartment in Wirksworth in April 1999. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar flats in Wirksworth with 100 year plus lease were valued about £193,400. The mid-range amount of ground rent was £65 invoiced monthly. The lease expired in 2084. Having 59 years unexpired we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including fees.