Wollaston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Wollaston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wollaston you really ought to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Wollaston with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest 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. |
| 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Wollaston leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the landlord of her one bedroom flat in Wollaston, Daisy initiated the lease extension process just as the lease was coming close to the crucial 80-year threshold. The lease extension was finalised in May 2007. The freeholder’s charges were kept to an absolute minimum.
Mrs F Petit bought a first floor flat in Wollaston in May 1999. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative premises in Wollaston with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 billed annually. The lease lapsed on 22 June 2089. Having 64 years outstanding we calculated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.
Dr Amber Cooper took over the lease of a studio flat in Wollaston in September 2011. The question was if we could approximate the premium would be to prolong the lease by an additional years. Comparable flats in Wollaston with a long lease were worth £270,000. The average amount of ground rent was £55 billed every twelve months. The lease expired in 2100. Considering the 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.