Unfortunately that a Wokingham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Wokingham property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. The majority of flat owners in Wokingham will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Wokingham with more than one hundred years unexpired 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Wokingham can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Wokingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Jude, came precariously close to the 80-year mark with the lease on his leasehold flat in Wokingham. In buying his property 19 years ago, the length of the lease was of no significance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Jude arranged for a lease extension at the eleventh hour in March. Jude and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If he not met the deadline, the sum would have escalated by a minimum £1,125.
Last month we were e-mailed by Mr and Mrs. F Laurent , who was assigned a lease of a studio flat in Wokingham in October 1996. The dilemma was if we could estimate the price could be for a 90 year lease extension. Similar homes in Wokingham with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 billed yearly. The lease finished on 3 July 2075. Given that there were 50 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of legals.
Last year we were e-mailed by Dr Matthew Torres , who took over the lease of a ground floor flat in Wokingham in June 2003. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable properties in Wokingham with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated in 2095. Given that there were 70 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.