The nearer a domestic lease in Wollaton gets to zero years unexpired, the more it reduces the value of the property. If the lease has, over 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. The majority of flat owners in Wollaton will meet the qualifying criteria; however a conveyancing solicitor can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Wollaton with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with procure Wollaton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In recent months Hunter, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Wollaton. Having bought his flat 18 years ago, the length of the lease was of minimal relevance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Hunter extended the lease just ahead of time last June. Hunter and the freeholder ultimately agreed on the final figure of £5,000 . If the lease had gone below eighty years, the sum would have become more exhorbitant by a minimum £1,050.
Mrs Laura Brooks took over the lease of a purpose-built apartment in Wollaton in June 1998. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable homes in Wollaton with a long lease were valued around £203,200. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed in 2086. Considering the 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.
Dr B Hill acquired a purpose-built flat in Wollaton in June 2008. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar properties in Wollaton with an extended lease were worth £260,000. The mid-range ground rent payable was £50 billed annually. The lease concluded on 25 November 2097. Having 72 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.