Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Wollaton. Clearly, the term of lease remaining shortens over time. This is often ignored and only becomes a problem when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Wollaton have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful consideration before putting off your Wollaton lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold residencies in Wollaton with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service will provide you better control over the value of your Wollaton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Jayden, started to get close to the 80-year threshold with the lease on his two bedroom flat in Wollaton. In buying his property 18 years ago, the length of the lease was of little significance. by good luck, he noticed he would imminently be paying an escalated premium for a lease extension. Jayden arranged for a lease extension at the eleventh hour in April. Jayden and the landlord ultimately settled on the final figure of £6,000 . If he not met the deadline, the premium would have escalated by at least £950.
Mr and Mrs. Y Khan took over the lease of a first floor apartment in Wollaton in July 2000. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar premises in Wollaton with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed in 2105. Having 80 years remaining we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Mr and Mrs. A Clark took over the lease of a newly refurbished apartment in Wollaton in November 2010. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable premises in Wollaton with a long lease were worth £200,800. The average ground rent payable was £65 billed per annum. The lease termination date was on 5 November 2085. Having 60 years left we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus legals.