Wiveliscombe leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Wiveliscombe will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Wiveliscombe with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you increased control over the value of your Wiveliscombe leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted discussions with the freeholder of her two bedroom flat in Wiveliscombe, Lydia initiated the lease extension process just as the lease was approaching the all-important eighty-year mark. The legal work was concluded in February 2012. The freeholder’s charges were kept to an absolute minimum.
Mr Eli Torres acquired a garden apartment in Wiveliscombe in March 2009. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Similar premises in Wiveliscombe with 100 year plus lease were valued about £218,000. The average amount of ground rent was £45 invoiced every twelve months. The lease expiry date was in 2088. Having 63 years left we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus expenses.
Mr and Mrs. D Robinson moved into a one bedroom apartment in Wiveliscombe in September 2005. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative premises in Wiveliscombe with a long lease were valued about £270,000. The mid-range ground rent payable was £55 collected annually. The lease expired on 18 August 2099. Considering the 74 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.