The re-sale value of a leasehold property in Wolsingham depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be finalised ahead of the eighty year threshold. Statute enables Wolsingham qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Wolsingham can be a difficult process. We recommend you procure professional help from a conveyancer and valuer 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.
Off the back of lengthy negotiations with the freeholder of her first floor apartment in Wolsingham, Alice initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction completed in February 2006. The landlord’s fees were negotiated to below 550 pounds.
In 2009 we were phoned by Dr G Norbert who, having moved into a studio apartment in Wolsingham in June 2011. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative premises in Wolsingham with an extended lease were valued about £208,200. The mid-range ground rent payable was £65 collected yearly. The lease end date was on 10 May 2087. Given that there were 61 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including costs.
Mrs M Simon bought a ground floor flat in Wolsingham in April 1998. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative residencies in Wolsingham with a long lease were in the region of £260,000. The average amount of ground rent was £50 invoiced annually. The lease came to a finish on 11 September 2098. Given that there were 72 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.