Wiveliscombe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Wiveliscombe enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wiveliscombe you would be well advised to see if your lease has between 70 and ninety years left. There are good reasons why a Wiveliscombe leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with undertake Wiveliscombe 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.
Lucas was the the leasehold proprietor of a conversion apartment in Wiveliscombe being marketed with a lease of just over fifty eight years unexpired. Lucas on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend 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. Ordinarily, ground rent would not be payable on a lease extension were Lucas to exercise his statutory right. Lucas procured expert advice and secured an acceptable resolution informally and readily saleable.
Last February we were called by Mr and Mrs. M Bernard , who was assigned a lease of a one bedroom flat in Wiveliscombe in September 1999. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative flats in Wiveliscombe with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expiry date was on 22 February 2095. Given that there were 70 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Mr and Mrs. I Evans moved into a basement flat in Wiveliscombe in January 2009. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparative flats in Wiveliscombe with a long lease were valued about £246,800. The average amount of ground rent was £60 billed annually. The lease ran out on 26 August 2075. Taking into account 50 years left we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 plus professional charges.