When it comes to domestic leasehold property in Wolverhampton, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years left. Residents in Wolverhampton with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has less than eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Wolverhampton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wolverhampton valuers.
Samuel owned a conversion flat in Wolverhampton on the market with a lease of just over fifty eight years outstanding. Samuel on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Samuel to invoke his statutory right. Samuel procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2009 we were phoned by Mr Jacob Ward who, having owned a recently refurbished flat in Wolverhampton in June 2000. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Wolverhampton with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced annually. The lease ended in 2104. Given that there were 79 years left we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
Ms Georgina Reed purchased a one bedroom flat in Wolverhampton in May 2004. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Similar premises in Wolverhampton with 100 year plus lease were worth £193,400. The average ground rent payable was £65 collected quarterly. The lease lapsed on 25 September 2084. Having 59 years left we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of expenses.