Wolverhampton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Wolverhampton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wolverhampton you really ought to see if your lease has between seventy and ninety years left. There are good reasons why a Wolverhampton flat owner with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 better control over the value of your Wolverhampton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the landlord of her first floor apartment in Wolverhampton, Kelsey started the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work was concluded in September 2011. The freeholder’s charges were negotiated to under 500 GBP.
Dr Jude Clark completed a one bedroom flat in Wolverhampton in January 2007. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical residencies in Wolverhampton with 100 year plus lease were worth £254,200. The average ground rent payable was £60 invoiced monthly. The lease elapsed on 10 May 2077. Having 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of legals.
Last month we were contacted by Mr and Mrs. B White , who completed a basement apartment in Wolverhampton in February 2003. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in Wolverhampton with a long lease were worth £210,600. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed on 22 October 2088. Taking into account 62 years remaining we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus professional charges.