Wollaston leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Wollaston will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Wollaston,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wollaston valuers.
Finley owned a 2 bedroom flat in Wollaston being marketed with a lease of a little over fifty eight years left. Finley informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Finley to exercise his statutory right. Finley procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Last year we were phoned by Ms M Dupont , who was assigned a lease of a one bedroom apartment in Wollaston in January 1998. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Wollaston with a long lease were valued about £275,000. The mid-range ground rent payable was £55 billed yearly. The lease terminated in 2101. Given that there were 76 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Dr Rhiannon Rogers owned a ground floor flat in Wollaston in November 2009. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Wollaston with 100 year plus lease were valued around £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease termination date was in 2081. Given that there were 56 years as a residual term we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.