Wollaton leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Wollaton will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain cases you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Wollaton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Ollie, came precariously close to the 80-year threshold with the lease on his one bedroom apartment in Wollaton. Having bought his home 19 years previously, the lease term was of no concern. Luckily, he became aware that he needed to take steps soon on a lease extension. Ollie extended the lease just in the nick of time last September. Ollie and the freeholder ultimately agreed on the final figure of £5,500 . If he not met the deadline, the price would have become more costly by a minimum £1,100.
In 2012 we were called by Ms Jasmine Wilson who, having moved into a one bedroom apartment in Wollaton in August 2010. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar premises in Wollaton with an extended lease were in the region of £256,600. The average amount of ground rent was £60 billed quarterly. The lease finished on 5 February 2078. Considering the 52 years left we calculated the premium to the freeholder to extend the lease to be between £41,800 and £48,400 exclusive of costs.
Last Winter we were e-mailed by Mr and Mrs. G Morgan , who purchased a newly refurbished flat in Wollaton in September 2009. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative premises in Wollaton with 100 year plus lease were valued around £218,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ran out in 2089. Given that there were 63 years left we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus costs.