On the balance of probabilities if you own a flat in Wollaston you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 landlord in Wollaston,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wollaston valuers.
Two years ago Joseph, came very near to the 80-year mark with the lease on his two bedroom flat in Wollaston. Having purchased his property 19 years ago, the length of the lease was of no bearing. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Joseph extended the lease just under the wire in March. Joseph and the freeholder via the management company ultimately settled on sum of £6,000 . If the lease had dropped to less than eighty years, the premium would have become more exhorbitant by a minimum £1,100.
Last year we were approach by Dr Y Wilson , who moved into a recently refurbished flat in Wollaston in August 2011. The question was if we could estimate the premium could be to extend the lease by 90 years. Comparative properties in Wollaston with a long lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected yearly. The lease finished in 2085. Taking into account 59 years unexpired we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.
Mr and Mrs. C Dupont owned a one bedroom apartment in Wollaston in June 1999. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in Wollaston with an extended lease were worth £255,000. The average ground rent payable was £50 billed yearly. The lease expired in 2096. Having 70 years outstanding we approximated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 not including costs.