Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Wollaston. Clearly, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Wollaston have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Please give careful attention before delaying your Wollaston lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Wollaston with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Wollaston leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Felix, started to get close to the eighty-year mark with the lease on his studio apartment in Wollaston. Having purchased his flat 18 years ago, the unexpired term was of minimal concern. Luckily, he became aware that he needed to take action soon on a lease extension. Felix extended the lease at the eleventh hour in May. Felix and the landlord ultimately agreed on the final figure of £6,000 . If the lease had dropped below eighty years, the figure would have increased by at least £1,150.
Ms Jade Wood took over the lease of a basement apartment in Wollaston in November 2009. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical premises in Wollaston with a long lease were worth £265,000. The average ground rent payable was £50 invoiced quarterly. The lease ended in 2099. Having 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. U Gray moved into a garden flat in Wollaston in April 2007. We are asked if we could approximate the price would be to prolong the lease by ninety years. Identical flats in Wollaston with 100 year plus lease were valued around £264,000. The mid-range amount of ground rent was £60 billed yearly. The lease came to a finish in 2079. Taking into account 53 years unexpired we estimated the premium to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of legals.