The value of Wolstanton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is below than 80 years
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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Tyler was the the leasehold owner of a studio flat in Wolstanton being sold with a lease of a few days over sixty years remaining. Tyler on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Tyler to exercise his statutory right. Tyler procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last Spring we were called by Mr and Mrs. O Mercier , who owned a recently refurbished apartment in Wolstanton in July 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar flats in Wolstanton with a long lease were worth £290,000. The mid-range ground rent payable was £45 billed per annum. The lease terminated in 2098. Given that there were 72 years remaining we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus professional charges.
Mr Ryan Roberts moved into a ground floor flat in Wolstanton in October 2001. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Similar residencies in Wolstanton with 100 year plus lease were valued around £233,200. The average amount of ground rent was £60 invoiced monthly. The lease ended on 6 February 2087. Taking into account 61 years remaining we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including legals.