Wollaton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Wollaton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wollaton you should check if your lease has between 70 and ninety years left. There are compelling reasons why a Wollaton leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Wollaton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wollaton valuers.
In 2014 Hugo, started to get close to the 80-year threshold with the lease on his garden flat in Wollaton. Having bought his property two decades ago, the lease term was of no concern. by good luck, he recognised he needed to take steps soon on Extending the lease. Hugo was able to extend his lease at the eleventh hour in July. Hugo and the landlord who owned the flat above ultimately settled on sum of £5,500 . If the lease had dipped to less than eighty years, the premium would have increased by at least £900.
In 2013 we were e-mailed by Mr and Mrs. U Cox who, having acquired a first floor apartment in Wollaton in October 2009. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Identical premises in Wollaton with an extended lease were worth £193,400. The average amount of ground rent was £65 collected every twelve months. The lease came to a finish in 2085. Considering the 59 years as a residual term we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.
Mr and Mrs. E Gray bought a basement flat in Wollaton in October 1995. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparative homes in Wollaton with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 collected annually. The lease finished in 2096. Taking into account 70 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.