The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Wolsingham may extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Wolsingham lease extension. Shelving the costs today simply escalates the amount you will ultimately be required to pay for a lease extension.
Leasehold premises in Wolsingham with more than 100 years unexpired on the lease are sometimes 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 reversionary interest unless savings on ground rent and estate charges merit it.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| 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. |
Lease extensions in Wolsingham can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Wolsingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian was the the leasehold proprietor of a conversion flat in Wolsingham on the market with a lease of fraction over 61 years left. Sebastian informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and secured an acceptable deal informally and readily saleable.
Last Spring we were called by Dr A Cook , who was assigned a lease of a first floor flat in Wolsingham in March 1997. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical flats in Wolsingham with a long lease were valued around £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired in 2089. Having 63 years left we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of expenses.
Mr and Mrs. I Wright completed a purpose-built apartment in Wolsingham in September 2008. The question was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Wolsingham with an extended lease were in the region of £265,000. The mid-range ground rent payable was £55 collected per annum. The lease termination date was on 24 September 2100. Having 74 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.