Wolstanton leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Wolstanton will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Wolstanton with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The conveyancing solicitors that we work with procure Wolstanton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
During the course of the last few months Andrew, started to get near to the 80-year mark with the lease on his garden flat in Wolstanton. In buying his flat 19 years ago, the lease term was of minimal interest. by good luck, he recognised he would imminently be paying an escalated premium for a lease extension. Andrew extended the lease just under the wire last June. Andrew and the freeholder via the management company eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the premium would have increased by at least £1,025.
Last year we were called by Mr and Mrs. C David , who moved into a ground floor flat in Wolstanton in October 2012. The question was if we could estimate the price could be for a 90 year extension to my lease. Identical premises in Wolstanton with a long lease were worth £225,800. The mid-range ground rent payable was £60 collected per annum. The lease lapsed in 2086. Having 60 years remaining we approximated the premium to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of fees.
Last Spring we were called by Ms D André , who took over the lease of a one bedroom apartment in Wolstanton in January 2003. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Wolstanton with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 invoiced every twelve months. The lease came to a finish on 12 November 2106. Taking into account 80 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.