When it comes to domestic leasehold property in Wolston, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Anyone in Wolston with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has below eighty years outstanding, under the current statute the freeholder is entitled to calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Wolston with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| 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 conveyancers that we work with procure Wolston 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.
Last Spring George, started to get close to the 80-year mark with the lease on his purpose- built apartment in Wolston. Having purchased his property two decades ago, the unexpired term was of minimal importance. As luck would have it, he recognised he needed to take action soon on a lease extension. George was able to extend his lease at the eleventh hour last May. George and the freeholder subsequently settled on sum of £6,000 . If he not met the deadline, the figure would have gone up by at least £1,150.
Mr and Mrs. C Bell owned a ground floor apartment in Wolston in May 2003. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Wolston with a long lease were worth £275,000. The mid-range ground rent payable was £55 billed annually. The lease concluded in 2101. Having 76 years remaining we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
In 2014 we were approached by Mr and Mrs. Y Flores who, having acquired a studio apartment in Wolston in October 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Wolston with a long lease were worth £181,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2081. Given that there were 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including legals.