Wollaton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Wollaton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Wollaton you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Wollaton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wollaton valuers.
Eliot was the the leasehold proprietor of a conversion apartment in Wollaton being sold with a lease of fraction over 72 years unexpired. Eliot on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2012 we were called by Mr and Mrs. E Patel who, having completed a newly refurbished apartment in Wollaton in October 2002. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical residencies in Wollaton with an extended lease were valued around £245,000. The average amount of ground rent was £45 invoiced yearly. The lease expiry date was in 2093. Having 68 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Ms I Turner completed a one bedroom apartment in Wollaton in September 1995. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Wollaton with an extended lease were worth £285,000. The mid-range ground rent payable was £55 collected monthly. The lease end date was in 2104. Given that there were 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.