Wolverhampton leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease falls lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Wolverhampton will usually qualify for a lease extension; however a solicitor will check your eligibility. In some cases you may not qualify. There are prescribed timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Wolverhampton with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
Lease extensions in Wolverhampton can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Wolverhampton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago David, came precariously close to the eighty-year threshold with the lease on his leasehold apartment in Wolverhampton. Having purchased his flat 19 years ago, the length of the lease was of minimal significance. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. David arranged for a lease extension just under the wire in July. David and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by a minimum £1,000.
In 2011 we were phoned by Ms G Williams who, having took over the lease of a purpose-built flat in Wolverhampton in April 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Wolverhampton with 100 year plus lease were valued around £200,800. The mid-range amount of ground rent was £65 collected annually. The lease concluded on 19 July 2085. Considering the 60 years remaining we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of expenses.
Last May we were approach by Mrs Sarah Leroy , who was assigned a lease of a one bedroom flat in Wolverhampton in July 2002. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical flats in Wolverhampton with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 collected quarterly. The lease came to a finish on 16 October 2096. Given that there were 71 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.