When it comes to residential leasehold premises in Wolverley, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years left. Leasehold owners in Wolverley with a lease nearing 81 years left should seriously think of extending it without delay. Once a lease has below 80 years left, under the relevant legislation the landlord can calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 Wolverley can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 a wealth of experience procuring Wolverley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy correspondence with the landlord of her leasehold apartment in Wolverley, Isabel initiated the lease extension process as the 80 year threshold was fast coming. The legal work was concluded in April 2012. The landlord’s fees were kept to an absolute minimum.
Last year we were approach by Mr M Pérez , who owned a one bedroom apartment in Wolverley in October 2006. We are asked if we could estimate the price could be for a 90 year lease extension. Similar residencies in Wolverley with an extended lease were in the region of £191,400. The average ground rent payable was £55 billed every twelve months. The lease ran out on 1 May 2079. Considering the 54 years unexpired we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 plus costs.
In 2010 we were called by Mr A Scott who, having owned a one bedroom flat in Wolverley in January 1995. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable premises in Wolverley with an extended lease were worth £295,000. The average ground rent payable was £45 billed monthly. The lease came to a finish on 19 May 2099. Having 74 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.