There is no doubt about it a leasehold property in Wokingham is a wasting asset as a result of the diminishing lease term. If the residual term has, over 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Wokingham will meet the qualifying criteria; however a conveyancing solicitor can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 will provide you increased control over the value of your Wokingham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Zachary was the the leasehold proprietor of a conversion flat in Wokingham being sold with a lease of a few days over sixty years left. Zachary informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Zachary to exercise his statutory right. Zachary procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last month we were e-mailed by Dr I Sánchez , who owned a one bedroom apartment in Wokingham in November 2002. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Identical homes in Wokingham with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 collected annually. The lease finished in 2104. Taking into account 78 years left we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
Mrs E Brown purchased a one bedroom apartment in Wokingham in March 2005. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative homes in Wokingham with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 collected annually. The lease ended in 2093. Having 67 years remaining we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 plus fees.