Wokingham leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Wokingham will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Wokingham with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Using our service gives you enhanced control over the value of your Wokingham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Nathaniel, started to get near to the 80-year threshold with the lease on his first floor apartment in Wokingham. Having purchased his property twenty years previously, the length of the lease was of minimal importance. Luckily, he recognised he would imminently be paying way over the odds for Extending the lease. Nathaniel extended the lease just ahead of time last May. Nathaniel and the freeholder ultimately agreed on a premium of £6,000 . If the lease had dipped below 80 years, the premium would have gone up by at least £875.
Last Christmas we were e-mailed by Dr N James , who was assigned a lease of a ground floor flat in Wokingham in April 2002. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Similar properties in Wokingham with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 collected annually. The lease finished in 2101. Taking into account 76 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
In 2009 we were phoned by Mrs S Ricardo who, having took over the lease of a one bedroom flat in Wokingham in September 2010. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Wokingham with an extended lease were worth £257,800. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2090. Given that there were 65 years left we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.