Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Wolstanton. Inevitably, the term of lease left reduces over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Wolstanton have the legal entitlement to extend the lease for a further 90 years under legislation. You should give due deliberation before putting off your Wolstanton lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
Leasehold premises in Wolstanton with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Irrespective of whether you are a tenant or a freeholder in Wolstanton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wolstanton valuers.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her two bedroom apartment in Wolstanton, Madeleine initiated the lease extension process as the 80 year threshold was fast coming. The legal work was concluded in October 2007. The landlord’s fees were negotiated to slightly above 450 GBP.
In 2009 we were phoned by Mrs Mia Campbell who, having purchased a one bedroom apartment in Wolstanton in February 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Wolstanton with an extended lease were valued around £295,000. The average amount of ground rent was £45 billed per annum. The lease elapsed in 2099. Having 74 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
In 2012 we were e-mailed by Mr and Mrs. V Lefèvre who, having completed a ground floor apartment in Wolstanton in November 2011. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Similar homes in Wolstanton with an extended lease were in the region of £243,000. The average ground rent payable was £65 invoiced quarterly. The lease finished in 2088. Given that there were 63 years left we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.