Wolstanton leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Wolstanton will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Wolstanton with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 lawyer we work with provide it.
Off the back of lengthy negotiations with the landlord of her leasehold flat in Wolstanton, Abbie commenced the lease extension process as the eighty year mark was swiftly approaching. The legal work was finalised in April 2011. The landlord’s charges were negotiated to under 700 pounds.
In 2012 we were contacted by Mr and Mrs. W Walker who, having completed a ground floor apartment in Wolstanton in June 2007. We are asked if we could approximate the price could be for a 90 year lease extension. Identical residencies in Wolstanton with a long lease were valued about £240,600. The average amount of ground rent was £60 collected quarterly. The lease termination date was on 28 May 2087. Having 62 years left we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of legals.
Last Spring we were approach by Dr Hollie López , who purchased a basement apartment in Wolstanton in June 1995. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparable flats in Wolstanton with a long lease were valued around £174,200. The mid-range ground rent payable was £55 collected per annum. The lease came to a finish on 11 September 2076. Given that there were 51 years left we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.