Wolverhampton leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Wolverhampton will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
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 experience and the close ties they enjoy with Wolverhampton valuers.
Following lengthy discussions with the freeholder of her first floor flat in Wolverhampton, Alexandra started the lease extension process just as her lease was approaching the crucial eighty-year mark. The lease extension completed in June 2012. The landlord’s fees were negotiated to under 650 GBP.
Dr Kelsey Williams bought a garden apartment in Wolverhampton in November 2005. The question was if we could approximate the premium could be to extend the lease by 90 years. Comparative residencies in Wolverhampton with an extended lease were worth £264,000. The average ground rent payable was £60 billed annually. The lease came to a finish in 2078. Having 53 years outstanding we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus legals.
In 2010 we were e-mailed by Mr Teddy Miller who, having acquired a first floor apartment in Wolverhampton in February 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Wolverhampton with a long lease were worth £220,400. The average ground rent payable was £45 billed yearly. The lease lapsed in 2089. Taking into account 64 years outstanding we calculated the premium to the landlord to extend the lease to be within £16,200 and £18,600 not including professional charges.