Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Wolverley. Inevitably, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Wolverley have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Please give due deliberation before delaying your Wolverley lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Wolverley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wolverley valuers.
In 2014 Alexander, came dangerously close to the 80-year mark with the lease on his garden flat in Wolverley. In buying his property 19 years ago, the unexpired term was of little interest. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Alexander arranged for a lease extension at the eleventh hour in August. Alexander and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had descended below 80 years, the premium would have increased by at least £1,000.
In 2012 we were contacted by Mr and Mrs. T Jones who, having acquired a ground floor apartment in Wolverley in June 2010. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable homes in Wolverley with a long lease were worth £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease expired on 2 July 2097. Taking into account 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.
Mr and Mrs. Y Thomas took over the lease of a newly refurbished apartment in Wolverley in February 2005. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Similar residencies in Wolverley with a long lease were worth £225,800. The average amount of ground rent was £60 billed monthly. The lease ended on 21 February 2086. Considering the 60 years unexpired we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including professional charges.