Wokingham leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher premium will be due. Leasehold owners in Wokingham will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Wokingham leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Andrew was the the leasehold proprietor of a conversion flat in Wokingham being marketed with a lease of fraction over fifty eight years outstanding. Andrew informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Andrew to exercise his statutory right. Andrew procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2011 we were contacted by Dr Chelsea Brooks who, having completed a one bedroom flat in Wokingham in November 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Similar properties in Wokingham with an extended lease were valued around £198,800. The average amount of ground rent was £55 collected quarterly. The lease ran out in 2081. Taking into account 55 years remaining we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including fees.
Last year we were contacted by Ms Kirsty Carter , who moved into a studio apartment in Wokingham in October 1997. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Similar premises in Wokingham with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease came to a finish on 2 August 2101. Having 75 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.