It’s an underpublicised truth that a Wolverhampton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Wolverhampton property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Wolverhampton will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Wolverhampton with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Wolverhampton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Omar was the the leasehold proprietor of a conversion flat in Wolverhampton on the market with a lease of a few days over sixty years remaining. Omar on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Dr Milo Evans purchased a newly refurbished apartment in Wolverhampton in March 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable homes in Wolverhampton with 100 year plus lease were in the region of £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish in 2089. Given that there were 63 years left we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including costs.
In 2013 we were approached by Ms L Allen who, having owned a studio apartment in Wolverhampton in May 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical properties in Wolverhampton with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 collected monthly. The lease expiry date was on 6 April 2100. Considering the 74 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.